(Bloomberg) — Palantir Technologies Inc. (PLTR), Dell Technologies Inc. (DELL) and Erie Indemnity Co. (ERIE) are set to join the S&P 500 as part of its latest quarterly weighting change.
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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.
Shares of the Denver-based company have surged 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 Friday.
Dell, the Round Rock, Texas-based leader in personal computers and displays, reported better-than-expected revenue last week, driven by increased sales of servers designed to handle artificial intelligence 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 criteria for profitability, liquidity and volume of shares traded to qualify for the S&P 500, according to the August methodology.
Meanwhile, American Airlines’ delisting from the U.S. stock index highlights the challenges the industry has faced recently, including aircraft delivery delays and rising labor costs. The airline cut its earnings forecast in July after forecasts for domestic demand proved too optimistic. Its shares fell 0.8% after the market closed on Friday, adding to a 21% decline since the beginning 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.
Starting June: KKR, CrowdStrike, GoDaddy Join S&P 500 Rebalancing Index
—With the assistance of Isabel Lee.
(Updates with additional details throughout)
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