With the announcement late Friday that Palantir stock would be admitted to the S&P 500, the company shot up 14% on Monday and is now trading at its best level since early 2021.
Along with Dell, Palantir is also entering the index. Palantir has acquired American Airlines, and Dell has taken over from Etsy.
Due to the fact that fund managers who follow the index frequently adjust their portfolios to reflect the additions, shares of firms added to the benchmark frequently increase following the announcement. Monday’s gain in Dell shares was nearly 4%.
A business needs to have made money in each of the last four quarters and report a profit in order to be eligible to join the S&P 500.
Source (CNBC)
