Nike removed from S&P 100 after 75% stock decline

S&P Dow Jones Indices announced that Nike will be removed from the S&P 100 index on September 21, 2026, ending its 18-year run. The removal follows a 75% stock decline from its 2021 peak, wiping out $230 billion in market value due to stagnant growth and China challenges. Nike is replaced by tech firms Dell, Palo Alto Networks, Arista, and SanDisk, signaling a broader market shift from consumer brands to digital infrastructure.

Nike S&P 100 removal

• ▪Honeywell Aerospace, Simon Property Group, and Colgate-Palmolive will also be removed from the S&P 100 index alongside Nike on September 21, 2026
• ▪S&P Dow Jones Indices announced that Nike will be removed from the S&P 100 index, with the change taking effect before the market open on September 21, 2026
• ▪The removal of Nike from the S&P 100 index ends an approximately 18-year run for the athletic apparel company in the index
• ▪Nike will retain its membership in the wider S&P 500 index despite being removed from the S&P 100 index

Nike stock decline drivers

• ▪The decline in Nike's stock price has wiped out approximately $230 billion in market capitalization, reducing Nike's market value from $264 billion in late 2021 to around $57 billion
• ▪Nike's stock price has declined over 75% from its 2021 peak, trading around $38 to $40, representing its lowest price level in approximately 12 years
• ▪Nike's financial decline has been driven by stagnant revenue growth, shrinking gross margins, and persistent business challenges in Greater China

Technology sector index replacements

• ▪Palo Alto Networks is a cybersecurity firm whose chief executive officer, Nikesh Arora, stated that the artificial intelligence spending wave requires a new security stack
• ▪Arista Networks builds cloud networking infrastructure and sells the switches that connect artificial intelligence data centers
• ▪Dell Technologies, Palo Alto Networks, Arista Networks, and SanDisk will replace the four departing companies in the S&P 100 index on September 21, 2026
• ▪SanDisk, which was spun out of Western Digital in 2025, manufactures flash memory and saw its share price rise following the S&P 100 inclusion announcement

Index rebalancing mechanics

• ▪Losing the S&P 100 designation could reduce the pool of potential buyers for Nike shares because some fund managers use index membership as a screening criterion
• ▪Institutional investors, exchange-traded funds, and index funds tracking the S&P 100 must sell Nike shares and buy shares of the incoming companies to rebalance
• ▪The mechanical selling pressure from index funds rebalancing ahead of the September 21, 2026 effective date is expected to impact Nike's stock price

Mega-cap composition shift

• ▪Bloom Energy, Illumina, and Everpure will join the wider S&P 500 index on the morning of September 21, 2026
• ▪The replacement of consumer brands with technology companies in the S&P 100 index reflects a market shift toward digital infrastructure, cloud hardware, and cybersecurity
• ▪While Nike's stock price lost approximately 76% of its value over a five-year period, the S&P 100 index gained 83% over the same timeframe

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