S&P Dow Jones Indices has removed Nike from the S&P 100, effective before market open on September 21, 2026. The decision follows a stock slide that has wiped out approximately $230 billion in market value and pushed shares to a 12-year low.
Nike, once one of the most dominant consumer brands on the planet, is losing its place among the index's mega-caps. S&P Dow Jones Indices announced the removal on September 4, after the stock plummeted over 75% from its 2021 peak and now trades around $38 to $40, a level the company hasn't seen in roughly 12 years.
Stagnant sales and China troubles drive the slide
The decline stems from several headwinds hitting at once: stagnant revenue growth, shrinking gross margins, and persistent challenges in Greater China. The company isn't alone in the reshuffle — Honeywell Aerospace, Simon Property Group, and Colgate-Palmolive are also exiting the S&P 100, replaced by Dell Technologies, Palo Alto Networks, Arista Networks, and Sandisk.
Funds must sell as Nike exits the S&P 100
Nike will remain in the S&P 500, which casts a far wider net across market capitalizations. But the S&P 100 is closely tracked by institutional investors, ETFs, and index funds targeting mega-cap exposure, so Nike's removal forces those funds to sell their shares during rebalancing, adding mechanical selling pressure to an already battered stock.
What comes next
The immediate risk for shareholders is that this selling pressure builds as funds adjust their holdings ahead of the September 21 effective date. Beyond the mechanical flows, losing S&P 100 status could shrink Nike's pool of potential buyers, since some fund managers use index membership as a screening filter. Reclaiming a spot will require Nike to address margin compression, revenue stagnation, and its China growth problem at the same time.
Source: Crypto Briefing
Trading involves risk.
Risk Disclaimer
