The stocks of Twilio (TWLO) and Vylor (VYLR) are being added to the benchmark S&P 500 index, giving a boost to their share prices.
The two stocks are joining the S&P 500 as part of the index’s quarterly rebalancing.
Twilio is replacing the stock of Warner Bros. Discovery (WBD) after it was acquired by Paramount Skydance (PSKY). That transaction is expected to close on Oct. 6.
Vylor was added to the S&P 500 after completing its spinoff from Corteva (CTVA) on Oct. 1. The stock of Vylor essentially replaces Corteva in the large-cap index.
Corteva’s stock is moving to the S&P MidCap 400 index due to its smaller size. The company makes products for seeds and crop protection, including herbicides and insecticides.
Vylor, which now houses the main seed and biotechnology business, will be classified as a consumer staple stock in the S&P 500.
Shares of Vylor rose 3.4% as it entered the benchmark U.S. index, while shares of cloud communications company Twilio gained 1%.
Stocks of companies added to the S&P 500 often rise as mutual funds and exchange-traded funds (ETFs) that track the index are required to buy them.
Typically, the S&P 500 rebalances each quarter, adding and removing stocks.
However, the index also makes additions and deletions as needed in response to corporate actions such as mergers, acquisitions, and spinoffs.
TWLO stock has risen 185% over the last 12 months to trade at $301.27 U.S. per share.
