The recent decision by the S&P 500 committee to exclude Robinhood and Strategy from the index prompted market fluctuations. While Interactive Brokers benefited, the other two companies saw declines in their stock prices.
Robinhood and Strategy React to S&P 500 Snub
Robinhood has had a remarkable year, with its shares surging nearly 190% since the start of 2025, yet after the S&P 500 snub, its stock fell by 0.83% to $107.05. Strategy experienced a similar setback, with shares dropping 4.17% to $343.20, followed by a slight rebound to $344.47.
Interactive Brokers Benefits from S&P 500 Inclusion
Interactive Brokers was added to the S&P 500, positively impacting its stock, which surged by 4.4% in after-hours trading to $65.54. The following day, shares slightly declined to $62.72. Being included in the index typically boosts demand as funds need to acquire such shares.
Requirements for S&P 500 Inclusion
The S&P 500 committee takes multiple factors into account when assessing companies for inclusion, including a U.S. base, trading on a recognized exchange, a market cap of at least $22.7 billion, and sufficient liquidity. Even meeting these criteria does not guarantee inclusion.
The decision-making around S&P 500 inclusion or exclusion significantly impacts companies' stocks and market expectations. While Robinhood and Strategy faced setbacks, Interactive Brokers reaps the rewards of its new status.
