Robinhood shares soar 14% after getting long-sought addition to S&P 500

Robinity S&P Global said it would add online intermediaries. S&P 500Speculation for months.

Stocks increased by more than 14% in Monday at noon. If this closing bell, Monday would marked the best day of the stock since the beginning of April.

S&P Global Say on Friday to replace Robinhood Caesars Entertainment Stalwart is at the US Market Index. The change will take place on September 22 before the start of the transaction.

The inclusion of Robinhood follows a few months of conversation from Wall Street about whether the company can earn a place in the average comparison average.

Companies usually compete for a place in the S&P 500 because such an addition can catalyze billions of dollars in trade. Passive funds are usually expected to buy a large number of shares in weeks following the addition of a stock.

Bank of America analyst Craig Sienthaler wrote a note to customers last month.

After the company failed to take part in the last reorganization, stocks fell in June. CEO Vlad Tenev said he was uncertain but optimistic when asked about the potential to participate in the index at the annual meeting of Robinhood that month.

“It’s hard to plan,” Tenev said. “I think it’s one of the things that happened.”

However, it was short for the withdrawal of the stock, Robinhood’s shares are now more than 210%. Despite a decrease in market sales in 2022, the stock has increased since it was opened to the public in 2021.

ApplovinS&P Global will also take a place in the index, Monday said that more than 10%. Caesars Entainment shares and Marketaxess Holdings – Two shares removed from S&P 500 – both of them recorded during the session.

– Yun Li and Jordan Nove from CNBC contributed to this report.