On Monday, shares of AppLovin (NASDAQ:APP) and The Trade Desk Inc . (NASDAQ:TTD) experienced declines after the companies were not included in the latest S&P 500 Index rebalance. AppLovin's stock fell sharply by 11%, while The Trade Desk saw a more modest drop of 1.6%.
Coinbase (NASDAQ:COIN), another notable tech company, also failed to make the cut for the S&P 500, resulting in a 3.3% decline in its shares. This news came as the index underwent its periodic rebalancing, which is intended to ensure that the index remains a reliable indicator of the large-cap market segment.
In contrast, shares of Apollo Global Management (NYSE:APO) and Workday (NASDAQ:WDAY) saw rallies as it was announced they would be joining the S&P 500. These companies are set to replace Qorvo (NASDAQ:QRVO) and Amentum in the index. The changes are reflective of ongoing shifts in the market and the continuous effort to maintain the S&P 500's representation of the large-cap market space.
The S&P 500 Index is widely regarded as one of the best single gauges for large-cap U.S. equities. The index includes 500 leading companies and captures approximately 80% coverage of available market capitalization, making it a vital reference for investors. The addition or exclusion of companies can influence investor perception and stock performance, as seen in the market reactions following the latest rebalance.
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