The new S & P 500 tech index will take effect after the close of trading on Friday: Apple and Microsoft will rise to 46%, excluding 11 companies such as Visa.

CTOnews.com, March 21 (Xinhua)-- A comprehensive reform of the Industry benchmark (sector benchmarks) compiled by S & P Global and Morgan Stanley Capital International will take effect after the close of trading on Friday, according to Bloomberg.

CTOnews.com learned from the report that this reform has removed including Visa Inc., Mastercard Inc. And PayPal Holdings Inc. Eleven large stocks, including three financial payment companies, Paychex Inc. And Automatic Data Processing Inc. Payroll processing companies will be classified as industrial stocks (industrials).

The reform reduces the weight of technology stocks in the S & P 500 and makes the rest of the industry index more influential.

After excluding Visa and Mastercard, the S & P 500 Information Technology Index raised the weighting of Apple and Microsoft to 46 per cent.

This means that the share prices of Apple and Microsoft have a greater impact on the S & P 500 information technology index, which will be exacerbated by the poor performance of the two stocks.