Robinhood Enters S&P 500, Marking Retail Trading's Shift To Wall Street Core

S&P Dow Jones Indices announced a sweeping update to its benchmarks late Friday, unveiling new additions to the S&P 100, S&P 500, S&P MidCap 400, and S&P SmallCap 600.

The adjustments, tied to the quarterly rebalance, will take effect before markets open on September 22.

The reshuffle is designed to ensure that each index more accurately reflects its market capitalization range.

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S&P 500 Additions

Three companies are joining the S&P 500: AppLovin Corp. (NASDAQ:APP), Robinhood Markets Inc. (NASDAQ:HOOD), and Emcor Group Inc. (NYSE:EME).

They will replace MarketAxess Holdings Inc. (NASDAQ:MKTX), Caesars Entertainment Inc. (NASDAQ:CZR), and Enphase Energy Inc. (NASDAQ:ENPH), which will be moved to smaller-cap indexes.

Robinhood’s addition to the S&P 500 represents a pivotal moment for the brokerage, Bloomberg reports.

Of all the firms, the trading app, once seen as emblematic of pandemic-fueled speculation, has matured into a mainstream financial player. It now manages billions in assets spanning stocks, options, and cryptocurrencies.

The milestone underscores its role as a lasting force in retail investor participation.

According to Benzinga Pro, HOOD stock has gained over 434% in the past year. Investors can gain exposure to the stock via ETF Opportunities Trust T-Rex 2X Long HOOD Daily Target ETF (BATS:ROBN).

The impact goes well beyond Robinhood itself. Inclusion in the S&P 500 automatically places the company into index funds, pensions, and retirement accounts globally.

That means a platform built on retail speculation now sits at the heart of institutional investing, Bloomberg adds. What began as a challenge to Wall Street is steadily becoming a cornerstone of it.

S&P 100 Change

Uber Technologies Inc. (NYSE:UBER) will join the S&P 100, replacing Charter Communications Inc. (NASDAQ:CHTR). Charter will remain a component of the S&P 500.

MidCap 400 And SmallCap 600 Updates

Several shifts are occurring in mid- and small-cap indexes. MP Materials Corp. (NYSE:MP) and Kratos Defense & Security Solutions Inc. (NASDAQ:KTOS) move into the S&P MidCap 400, while The Wendy’s Company (NASDAQ:WEN), MarketAxess, Caesars, and Enphase will transition into the S&P SmallCap 600.

Additionally, Nutanix Inc. (NASDAQ:NTNX) and TransUnion (NYSE:TRU) are joining the MidCap 400, while Acadia Healthcare Company Inc. (NASDAQ:ACHC) and ManpowerGroup Inc. (NYSE:MAN) shift to the SmallCap 600.

Other notable SmallCap 600 entrants include Noble Corporation plc (NYSE:NE), Q2 Holdings Inc. (NYSE:QTWO), Waystar Holding Corp. (NASDAQ:WAY), and Hecla Mining Co. (NYSE:HL).

Why It Matters

Index reshufflings often spark significant stock moves as fund managers tracking these benchmarks adjust their portfolios. Companies added to the S&P 500, in particular, frequently see higher demand because of the large pool of passive investors tied to the index.

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