Key Takeaways
- Robinhood Markets, AppLovin, and Emcor Group shares gained on word they will be added to the S&P 500 prior to the start of trading Sept. 22.
- S&P Dow Jones Indices said the three will replace MarketAxess Holdings, Caesars Entertainment, and Enphase Energy. Those three will be shifted to the S&P SmallCap 600 Index.
- The changes were part of S&P Dow Jones Indices’ quarterly rebalancing.
Shares of trading platform Robinhood Markets (HOOD), mobile marketing provider AppLovin (APP), and engineering firm Emcor Group (EME) all advanced in premarket trading Monday on word they will be added to the S&P 500 Index.
S&P Dow Jones Indices, which sets the membership, announced after the close of trading Friday that the three would join the index before the opening bell on Sept. 22 as part of its quarterly rebalancing.
The companies will replace MarketAxess Holdings (MKTX), Caesars Entertainment (CZR), and Enphase Energy (ENPH), respectively. Those three will be shifted to the S&P SmallCap 600 Index.
Shares of AppLovin, Robinhood, and Emcor Group were up more than 9%, 8%, and 2%, respectively, about an hour before the opening bell.
Stocks of companies included in the S&P 500 can benefit because it exposes them to a wider group of investors who could become aware of them through an index. In addition, they can be added to various index funds that track stocks that are part of the S&P 500.