Vertiv, Lumentum, Coherent, EchoStar pop on S&P 500 inclusion, as Match Group is removed
Data center equipment maker Vertiv Holdings, photonic companies Lumentum and Coherent, and telecom company EchoStar rose in premarket trading on Monday after S&P Dow Jones Indices announced on Friday that the four companies will join its flagship S&P 500 Index.
The newcomers will replace Match Group, Molina Healthcare, Lamb Weston, and Paycom Software, most of which are trading lower in premarket trading on Monday.
The S&P 500 has four quarterly formal rebalancing events per year, but the committee can make changes to the index at any time, and additions or deletions usually come with substantial flows of buying and selling, with trillions of dollars passively tracking the index through ETFs like SPY and VOO.
The latest rebalancing reflects the success of companies within the AI infrastructure boom. The new entrants include two major photonic companies — Lumentum and Coherent — both of which surged last week after Nvidia announced a $2 billion investment in each firm. Both work on technology that helps information move at the speed of light within data centers. Vertiv is also AI-adjacent as a big-name data center power infrastructure provider, and had been considered a likely new joiner this quarter by investors in prediction markets.
(Event contracts are offered through Robinhood Derivatives, LLC — probabilities referenced or sourced from KalshiEx LLC or ForecastEx LLC.)
SoFi Technologies, another contender for the S&P 500 this quarter from prediction market traders that ended up not making the cut, is also down 3% at the time of writing.
The S&P 500 has four quarterly formal rebalancing events per year, but the committee can make changes to the index at any time, and additions or deletions usually come with substantial flows of buying and selling, with trillions of dollars passively tracking the index through ETFs like SPY and VOO.
The latest rebalancing reflects the success of companies within the AI infrastructure boom. The new entrants include two major photonic companies — Lumentum and Coherent — both of which surged last week after Nvidia announced a $2 billion investment in each firm. Both work on technology that helps information move at the speed of light within data centers. Vertiv is also AI-adjacent as a big-name data center power infrastructure provider, and had been considered a likely new joiner this quarter by investors in prediction markets.
(Event contracts are offered through Robinhood Derivatives, LLC — probabilities referenced or sourced from KalshiEx LLC or ForecastEx LLC.)
SoFi Technologies, another contender for the S&P 500 this quarter from prediction market traders that ended up not making the cut, is also down 3% at the time of writing.
