The S&P 500 constituents remain unchanged, and the market favorite Robinhood unexpectedly did not make the cut
S&P Dow Jones Indices announced that the constituents of the S&P 500 Index remain unchanged in the latest quarterly adjustment. Market favorite Robinhood Markets unexpectedly failed to be included, despite analysts predicting it as a strong candidate. Robinhood's stock price rose about 13% this week, but fell 5% in after-hours trading following the exclusion. According to regulations, companies must meet standards such as market capitalization and profitability to enter the S&P 500 Index
According to the Zhitong Finance APP, S&P Dow Jones Indices announced that there were no changes to the constituents of the S&P 500 Index in the latest quarterly adjustment on Friday.
Wall Street analysts often predict which companies will be included before the announcement. This time, the market-favored brokerage Robinhood Markets (HOOD.US) failed to make the cut, despite speculation from companies including Bank of America and Barclays that it was a strong candidate for inclusion in the benchmark index.
Robinhood rose about 13% this week, but after failing to be included, the company's stock price fell 5% in after-hours trading.
According to the methodology established in March, a company must have a market capitalization of at least $20.5 billion and meet profitability, liquidity, and float standards to qualify for inclusion in the S&P 500 Index.
Inclusion in the U.S. stock benchmark index can enhance a company's profile and has become increasingly important with the growth of passive investment funds. Being removed from the benchmark index can put pressure on stock prices, as index funds will sell shares to align with the new constituents of the S&P 500.
In previous quarterly adjustments, DoorDash Inc., Williams-Sonoma Inc., TKO Group Holdings Inc., and Expand Energy Corp. were included in the S&P 500 Index
