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Sandisk Stock Joins the Nasdaq 100 Today. Why It's Falling

Dow Jones17:28

Sandisk is set to join the Nasdaq 100 on Monday -- but shares in the flash memory product supplier were sliding ahead of the opening bell.

The stock fell 1.74% to $905 in premarket trading. Futures tracking the S&P 500 were 0.6% lower following a flare-up in tensions between the U.S. and Iran.

It's not unusual for shares to rally in the run-up to a company joining a high-profile index, then slip on the day of inclusion. Sandisk jumped 12% last Monday, when Nasdaq said it would be joining the benchmark tech index.

Sandisk may also have been dropping because of the market's worries about the war in the Middle East. Tensions between the U.S. and Iran flared up over the weekend, fueling worries that their cease-fire could fracture.

The stock has surged 2,990% over the past year, powered higher by the boom in construction of data centers, which has driven up demand for memory products.

Atlassian is leaving the Nasdaq 100 to make room for Sandisk. The software developer's shares slipped 1.4% ahead of Monday's opening bell.

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