Palantir Technologies Inc., Dell Technologies Inc. and Erie Indemnity Co. are set to join the S&P 500 as part of the latest quarterly weighting change.
The companies will replace American Airlines Group Inc., Etsy Inc. and Bio-Rad Laboratories Inc., according to a press release from S&P Dow Jones Indices on Friday. The changes are scheduled to take effect before the opening of trading on Sept. 23.
The addition of Palantir and Dell reflects how technology companies, particularly those related to artificial intelligence, are reshaping the market. Palantir, the data analytics software company co-founded by billionaire tech investor Peter Thiel, has grown from serving the U.S. intelligence community to working with dozens of government agencies and, more recently, expanding its commercial business.
The Denver-based company’s shares have risen more than 75% this year as investors bet the software and surveillance company will benefit From growing demand for its artificial intelligence tools. Shares jumped 8.4% in after-hours trading on Friday.
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Dell, based in Round Rock, Texas, known for its personal computers and monitors, reported better-than-expected revenue last week as a result of Increase in sales From servers designed to handle AI workloads.
Shares of the appliance giant rose about 8.7% after the close of trading, while insurer Erie Indemnity rose about 5.5%.
Companies must have a market capitalization of at least $18 billion and meet profitability, liquidity and share trading standards to qualify for the S&P 500, according to an August report. methodology.
Meanwhile, American Airlines’ removal from the benchmark U.S. stock index underscores the challenges the industry has faced recently, including delayed aircraft deliveries and rising labor costs. lowered its profit forecast In July, after the outlook for domestic demand proved too rosy. Its shares fell 0.8% after the market on Friday, adding to a 21% decline since the start of the year.
A company’s inclusion in the benchmark U.S. stock index could boost its profile, which has become more important with the growth of passive investment funds. Being kicked out of the benchmark index could hurt stock prices, as index funds sell shares to realign themselves to the new composition of the S&P 500.
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