- War’s First Inflation Hit Arrives in the Euro Area
- China’s Pivot to Vietnam Blows Hole in Trump’s Made-in-USA Plan
- Why Is the Japanese Yen So Weak — and Will Authorities Intervene?
- A $50 Trillion National Debt In 2030 Will Signal Opposite of Debt Problem
- US Bonds Are Caught in a Tug-of-War Between Inflation and Growth
- Who Is Laffing Now?
- Powell Says Fed Can Look Past Oil Shock, but Warns Patience Has Limits
- Oil and Gas Prices Continue to Rise in Choppy Trade
- Energy Stocks Set to Beat Broader Market by Biggest Margin Ever
- Fresh Food Distributors Add Surcharges as Fuel Costs Rise
- Trump Tax Law’s Expansion of Affordable Housing Credit Hits Snag
- Government Attacks on Credit Cards Won’t Bring Down Prices
- Private Lenders Delay Reckoning with Payment Concessions on Stressed Debt
- U.S. Banks Raising Borrowing Costs for Private Credit Funds as AI Fears Pummel Valuations
- JPMorgan Takes On American Dream in Latest Firmwide Initiative
- Private Equity’s Growing Appetite for Fast Food in Japan
- Japan Is Placing a Multibillion-Dollar Bet on the US Housing Market
- Lilly to Buy Sleep Drug Maker Centessa in $7.8 Billion Deal
- Biogen to Buy Apellis for $5.6 Billion to Boost Kidney Franchise
- Unilever Food Arm to Join With McCormick in $44.8 Billion Deal
- Unilever’s $40 Billion Food Sale Augurs a More Beautiful Future
- Whoop Raises $575 Million at a $10 Billion Valuation on Its Way to an IPO
- Google Partner Tenex Raises $250 Million for AI Security Services
- The Sudden Fall of OpenAI’s Most Hyped Product Since ChatGPT
- Exxon Scientists Had Doubts About Algae Biofuels. The Oil Giant Touted Them Anyway.
- Delta to Tap Amazon Satellite-Internet Service for In-Flight Wi-Fi
- Hegseth’s Culture Wars Are Inviting a Military Disaster
- A Crackdown on Dreamers Is a Crackdown on the American Dream
- The DC Streetcar Was Desired. It Just Wasn’t Worth It
- How a Massive KitKat Heist Turned Into Crisis PR Gold
Recession fears: An indicator tied to Walmart's (WMT) stock, tracked by veteran strategist Jim Paulsen, signals a sharp economic downturn.
Insider allegations: Did Pete Hegseth's broker look to buy defense funds before the Iran attack? The Pentagon has dismissed the report.
No more waiting
The Nasdaq (NDAQ) is evolving its index rules, like the ones that impact the flagship Nasdaq 100 (NDX). It's a big deal, given that more than $600B of exchange-traded funds are linked to the popular index, which is one of the key market gauges for investors. That's especially true for the biggest technology companies, which are fueling the artificial intelligence boom and beyond.
What's happening? The biggest change coming to the Nasdaq 100 will slash the time it takes for newly listed, large-cap companies to enter its main index. In the past, it took at least three months following an IPO for firms to be classified as eligible, to ensure that the market established a reliable share price and the stock no longer faced serious price swings. However, companies today generally wait much longer to list, ensuring they lock in a reliable amount of value before going public. As a result, the Nasdaq will shorten entry time to its benchmark index to a mere 15 trading days to give "a more accurate and timely representation of the investable market."
"Industry professionals, including asset managers and institutional passive portfolio managers, were mostly supportive of the Fast Entry proposal and proposed timing,” Nasdaq said in response to possible concerns over volatility. The clearest upcoming beneficiaries are the expected blockbuster IPOs of SpaceX (SPACE) and OpenAI (OPENAI). Both will come to market with potential trillion-dollar valuations, meaning factoring these listings and their enormous amounts of value into the market sooner will have significant implications.
Other changes: The new rules will take effect on May 1, along with several other revisions. Among them are the removal of the minimum 10% float requirement for eligibility, as well as low-float security weight adjustments, the replacement of the "10 basis point rule," and cessation of intra-quarter TSO adjustments. The Nasdaq (NDAQ) is not the only index provider that has been mulling changes. S&P Dow Jones Indices (SPGI, CME) and FTSE Russell (LSEGY) have been exploring how they can accelerate newly listed companies entering their flagship benchmarks, which, along with those from Nasdaq (NDAQ), are linked to $40T of assets globally. (2 comments)
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What else is happening...
WSB survey results: Global defense spending increase in the cards.
Burry pushes back on housing shortage narrative, calls for GSE reform.
Australia weighs legal action against META, others over teen ban breach.
Infographic: Sysco (SYY) chows down Restaurant Depot in $29B merger.
Delaware judge McCormick reassigns Elon Musk cases after bias claims.
EV slowdown: GM (GM) temporarily lays off 1,300 workers at Detroit plant.
Netflix (NFLX) eyes bigger NFL package with coverage of more live games.
Spanish minister: Airspace closed for U.S. aircraft involved in Iran attacks.
JetBlue (JBLU) hikes checked bag fees as jet fuel prices continue to soar.
Nvidia (NVDA) valuation falls to S&P 500 parity for first time in a decade.
Today's Markets
In Asia, Japan -1.6%. Hong Kong +0.2%. China -0.8%. India closed.
In Europe, at midday, London +0.4%. Paris +0.2%. Frankfurt +0.6%.
Futures at 7:00, Dow +0.7%. S&P +0.7%. Nasdaq +0.6%. Crude +1.9% to $104.81. Gold +0.4% to $4,575.60. Bitcoin -1.8% to $66,262.
Ten-year Treasury Yield -1 bp to 4.34%.