Robinhood, Applovin jump as S&P 500 reshuffle boosts index entrants

Investing.com -- Shares of Robinhood Markets Inc (NASDAQ:HOOD) surged 7.1% in after-hours trading Friday, following the announcement of its inclusion in the S&P 500 index. The trading platform is joined by Applovin Corp (NASDAQ:APP), which climbed 7.4%, and EMCOR Group Inc (NYSE:EME), up 2.6%, highlighting investor enthusiasm after S&P Dow Jones Indices unveiled sweeping changes to its major benchmarks.

Effective September 22, the trio will replace MarketAxess Holdings Inc (NASDAQ:MKTX), Caesars Entertainment Corporation (NASDAQ:CZR), and Enphase Energy Inc (NASDAQ:ENPH) in the S&P 500. Shares of the outgoing firms slipped 1.6%, 0.9%, and 2.1% respectively, reflecting the market’s response to their removal from the index.

Uber Technologies Inc (NYSE:UBER) is also set to enter the S&P 100, displacing Charter Communications Inc (NASDAQ:CHTR), which will remain in the S&P 500. Uber gained 0.2% in postmarket trading, while Charter dipped 0.6% amid the reshuffling.

The index transformation extends to the S&P MidCap 400 and S&P SmallCap 600 as well, as S&P DJI adjusts its rosters to reflect evolving market capitalizations better. Notably, Nutanix Inc (NASDAQ:NTNX) and TransUnion (NYSE:TRU) will enter the MidCap 400, replacing Acadia Healthcare Company Inc (NASDAQ:ACHC) and ManpowerGroup Inc (NYSE:MAN), each now shifting to the SmallCap 600.

In a cascading effect, MP Materials Corp (NYSE:MP) and Kratos Defense & Security Solutions (NASDAQ:KTOS), previously in the SmallCap 600, will join the MidCap 400, replacing Emcor Group and The Wendy’s Co (NASDAQ:WEN). The outgoing stocks from the MidCap 400 will themselves replace ProPetro Holding Corp (NYSE:PUMP), Xerox Corp (NASDAQ:XRX), and others at the smaller-cap index level.

S&P DJI noted the changes are part of its quarterly rebalance process and aim to ensure “each index is more representative of its market capitalization range.” The firm added that some of the companies “are no longer representative of the small-cap market space,” prompting their removal.

Among the notable additions to the S&P SmallCap 600 are Noble Corp (NYSE:NE), Q2 Holdings (NYSE:QTWO), Waystar Holding Corp (NASDAQ:WAY), and Hecla Mining Company (NYSE:HL), all of which posted solid gains between 2.5% and 3.3% following the announcement. These companies will replace Owens & Minor Inc (NYSE:OMI), B&G Foods Inc (NYSE:BGS), Jack In The Box Inc (NASDAQ:JACK), and Simulations Plus Inc (NASDAQ:SLP), each of which declined during after-hours trading.

Shares of MicroStrategy Incorporated (NASDAQ:MSTR) fell 3.1%, as some investors had hoped the company would be included in the S&P 500 rebalance, only to be left off the final list.