Robinhood, Strategy Stocks Not Included in S&P 500 Index, Slipping Their Price
Date: 2025-08-27 Author: Oliver Abernathy Categories: BUSINESS
The U.S. stock market was turbulent on Monday after it was announced that trading platform Robinhood Markets and software company Strategy were not included in the S&P 500 index. At the same time, Interactive Brokers Group was included in the prestigious index, replacing drugstore chain Walgreens Boots Alliance.
Following the announcement of the exclusion from the index, Robinhood (HOOD) shares fell 0.5% to close the day at $107.40, down 1.26% for the session. Strategy (MSTR) shares also felt the pressure: trading closed down 4.17%, and after the end of the main session, the price of securities fell by another 0.6%, reaching $341.
The opposite trend was observed for Interactive Brokers (IBKR). After its official inclusion in the index, its shares rose in extended trading by 3.9% to $65.21, while during the regular session the growth was less than 0.6%. At the same time, the S&P 500 index showed a decrease of 0.4%.
A company's inclusion in the S&P 500 is considered a positive signal for investors. This is due to the fact that shares of included companies are actively bought up by passive funds tracking the index, which usually supports the growth of their quotes.
The decision to include a company in the index is made by a special committee, guided by several criteria: the company's market capitalization must exceed $22.7 billion, the company must be registered in the United States and listed on the NYSE, Nasdaq or Cboe. Liquidity indicators and trading volume are also taken into account.
The latest crypto-related company to get into the S&P 500 was Jack Dorsey's Block, which underscored the index's growing interest in innovative technology and financial companies.
Thus, the exclusion of Robinhood and Strategy from the index was bad news for investors, while the inclusion of Interactive Brokers provided the company with additional support and increased interest from funds and private market participants.
While inclusion in the index does not guarantee long-term growth of shares, it creates favorable conditions for their trading and can stimulate the inflow of capital from passive investors, which is especially important for companies seeking a stable market position.
Overall market sentiment on Monday reflected investor caution and mixed reactions to news about the S&P 500 index, demonstrating the impact of such decisions on price dynamics.
