Intel stock spikes after report of possible US government stake
Investing.com -- Shares in Robinhood (NASDAQ:HOOD) and AppLovin (NASDAQ:APP) experienced a decrease of about 5% in premarket trading on Monday.
The decline followed the S&P Dow Jones Indices’ decision to leave the membership of the S&P 500 unchanged in its most recent quarterly rebalancing, which was conducted on Friday.
Wall Street analysts often predict which companies will be added to the index before the announcement. Bloomberg Intelligence’s Wendy Soong had listed AppLovin, Robinhood, Cheniere, Veeva Systems (NYSE:VEEV), and Vertiv as potential additions to the S&P 500.
Being included in the benchmark index is becoming increasingly significant for companies in an environment heavily influenced by passive investment funds. In contrast, being removed from the benchmark can negatively impact stock prices.
This is due to passive investors being required to sell their shares and adjust their portfolios to align with the new composition of the S&P 500.
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