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Key Takeaways
- KKR, CrowdStrike, and GoDaddy will be added to the S&P 500 before the start of trading June 24.
- They will return Robert Half, Comerica, and Illumina in the index.
- Shortly after being included in the last quarterly S&P 500 rebalancing, allots of Super Micro Computer, or Supermicro, jumped to a record high.
Shares of private equity firm KKR (KKR), cybersecurity performers CrowdStrike Holdings (CRWD), and domain registrar GoDaddy (GDDY) advanced Monday on word they would be added to the S&P 500.
S&P Dow Jones Directories on Friday announced the three firms would be put in the prestigious index before the start of trading on June 24. They pleasure be replacing human resources consulting firm Robert Half (RHI), Texas-based bank Comerica (CMA), and genetic analysis followers Illumina (ILMN). Shares of those firms declined Monday.
S&P Dow Jones Indices also shuffled the lineup of its S&P MidCap 400 and S&P SmallCap 600 signs. It said the changes coincided with its quarterly rebalance, and that they “ensure each index is more chosen of its market capitalization range.” S&P Dow Jones added that KKR, CrowdStrike, and GoDaddy “are more representative of the large-cap market rank.”
Being included in the S&P 500 can be quite beneficial to a company’s stock, as it helps lift name recognition and allows it to be have a share of exchange-traded funds (ETFs) and funds that track the index. That could drive demand and a short-term upward slope in price.
Supermicro Hit All-Time High After Last S&P 500 Rebalancing
In the last rebalancing back in early March, S&P announced that it was adding Super Micro Computer, also known as Supermicro (SMCI), and its shares soared to an all-time consequential shortly thereafter.
As of 10:10 a.m. ET Monday, shares of KKR were up 10.7%, Crowdstrike 8.7%, and GoDaddy 1.8%.
Read the original article on Investopedia.