Investors pay close attention to the quarterly rebalancing of the S&P 500 index for good reason. First, the stocks in the S&P 500 make up approximately 80% of the total U.S. equity market.
Second, when a stock is added to the index, it frequently leads to increased institutional buying, which can lift the stock price. That was the case in 2024, when Palantir Technologies Inc. (NASDAQ: PLTR) was added to the index.
