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Key Takeaways
- Shares of Palantir Technologies, Dell Technologies, and Erie Indemnity all gained Monday morning after it was announced they were being added to the S&P 500.
- Shares of firms included in the S&P 500 often get a bounce because they are purchased by investors who put their money in S&P 500 index funds.
- The companies will be replacing American Airlines Group, Etsy, and Bio-Rad Laboratories.
Shares of Palantir Technologies (PLTR), Dell Technologies (DELL), and Erie Indemnity (ERIE) all gained Monday morning after it was announced they were being added to the S&P 500 Index.
S&P Global, which operates the index, made the announcement on Friday, noting that the three would be part of the S&P 500 prior to the start of trading September 23. Shares of firms included in the S&P 500 often get a bounce because they are purchased by investors who put their money in S&P 500 index funds.
American Airlines, Etsy, Bio-Rad Being Replaced in S&P 500
The companies will be replacing American Airlines Group (AAL), Etsy (ETSY), and Bio-Rad Laboratories (BIO). American Airlines and Bio-Rad will now be part of the S&P MidCap 400 index, while Etsy will be part of the S&P SmallCap 600 index.
S&P Global explained that the changes were part of its quarterly rebalancing to ensure that each of its various indexes are “more representative of its market capitalization range.”