Nike’s S&P 100 exit fuels speculation over possible Dow removal

Nike’s planned removal from the S&P 100 on September 21, after 18 years in the index, has intensified speculation that it could also lose its place in the 30-stock Dow Jones Industrial Average. The company’s market value has fallen roughly 80% from its peak amid slowing sales, limited product innovation and stronger competition from newer sportswear brands. Nike shares have gained only about 5% since joining the Dow in 2013, compared with more than a fourfold increase for the S&P 500, and recently traded near $36, making Nike the Dow’s lowest-weighted component at about 0.4%. Because the price-weighted Dow has no automatic removal threshold, any change would depend on the index committee’s judgment, though historical reviews show that the lowest-weighted stock was removed in at least half of the Dow’s changes since 2013. Analysts say Nike is a plausible candidate for removal, but the timing remains uncertain.