Shares of advertising technology company AppLovin (APP) and online brokerage Robinhood Markets (HOOD) are each up 8% on news they’re being added to the S&P 500 index.
The additions, which are part of a quarterly rebalancing, take effect on Sept. 22, according to index manager S&P Global (SPGI).
AppLovin is replacing MarketAxess Holdings (MKTX) and Robinhood is taking the place of Caesars Entertainment (CZR) in the S&P 500.
Shares of MarketAxess, which specializes in bond trading, have fallen 17% this year, while shares of casino operator Caesars are down 21%.
Stocks typically go up on news of their inclusion in a major index such as the S&P 500 as fund managers are required to buy shares to reflect the updates.
Similarly, the stock of serial Bitcoin (BTC) acquirer Strategy (MSTR) is down 3% on news that it has once again been overlooked for inclusion in the benchmark index.
Robinhood Markets is a favorite among retail investors and the stock of AppLovin, which brings targeted advertisements to mobile apps and games, is up more than 1,000% since 2023.
AppLovin and Robinhood each went public in 2021 during the Covid-19 pandemic.
