Palantir Technologies Inc., Dell Technologies Inc. and Erie Indemnity Co. will likely be added to the S&P 500 as a part of the newest quarterly weighting change.
The corporations will replace American Airlines Group Inc., Etsy Inc. and Bio-Rad Laboratories Inc., S&P Dow Jones Indices said in a press release Friday. The changes are expected to take effect before trading begins on Sept. 23.
The latest additions of Palantir and Dell show how technology corporations, particularly names in artificial intelligence, are reshaping the market. Palantir, the info analytics software company co-founded by billionaire tech investor Peter Thiel, has evolved from serving the U.S. intelligence community to working with dozens of presidency agencies and, more recently, expanding its business business.
Shares of the Denver-based company have risen over 75% this 12 months as investors bet that the software and surveillance company To use from rising demand for its AI tools. Shares rose as much as 8.4% in after-hours trading on Friday.
The media couldn’t be loaded because either a server or network error occurred or the format just isn’t supported.
Dell, the Round Rock, Texas-based company best known for private computers and monitors, reported better-than-expected sales last week in consequence of a Increase in sales of servers designed to process AI workloads.
Shares of the hardware giant rose as much as 8.7% after the market closed, while insurance company Erie Indemnity rose as much as 5.5%.
Companies should have a market capitalization of not less than $18 billion and meet standards for profitability, liquidity and share ownership to qualify for the S&P 500, the August issue said. methodology.
The exclusion of American Airlines from the US stock index underscores the challenges the industry has faced recently, including delayed aircraft deliveries and rising labor costs. The airline has cut its profit forecast in July after expectations for domestic demand proved too rosy. The company’s shares fell 0.8 percent in after-hours trading on Friday, a 21 percent decline because the start of the 12 months.
Inclusion within the U.S. stock index can raise an organization’s profile and is becoming increasingly necessary given the expansion of passive mutual funds. Exclusion from the index can weigh on share prices as index funds sell shares to regulate to the brand new composition of the S&P 500.
(Updated with more details throughout)
In our latest special edition, a Wall Street legend gets a radical makeover, a story about crypto injustice, misbehaving poultry kings, and more.
Read the stories.
