Block Inc., founded by Jack Dorsey, is set to be included in the S&P 500 index, replacing Hess Corp. This decision follows Chevron's acquisition of Hess.
Inclusion of Block in S&P 500
S&P Dow Jones Indices confirmed that Block Inc., a blockchain-based payment company, will be added to the S&P 500 index, replacing the energy company Hess Corp. The changes will take effect before the market opens on July 23, following Chevron's $53 billion acquisition of Hess.
Market Reaction to the News
Following the announcement, Block's shares rose 14% in after-hours trading, indicating positive market sentiment towards this development.
Role of the S&P 500 Index for Companies
Inclusion in a significant index like the S&P 500 increases a company's visibility and can greatly impact its market capitalization, particularly with the rise of passive investment funds. Companies excluded from the index may face selling pressure as funds adjust their portfolios.
Block's inclusion in the S&P 500 represents a key milestone for the company and strengthens its position in the financial market, reflecting the ongoing growth of the tech sector.
