- Block rose 7% Monday after S&P Global said the fintech company will replace Hess in the S&P 500.
- Passive funds are expected to buy around 101 million shares ahead of inclusion, according to Stephens.
- Robinhood, up more than 345% over the past year, is still shut out of the S&P 500 despite having a market cap that is about double Block’s valuation.
Block shares jumped 7% on Monday after S&P Global said the company will join the S&P 500, replacing Hess, which was acquired by Chevron for $54 billion.
The stock rose following the announcement late Friday as investors sought to get in ahead of index fund managers, who will need to buy shares to mimic the changes. Square’s $48 billion market cap at Monday’s close places it well above the median S&P 500 constituent, though shares are still down 8% this year.
Passive funds are expected to purchase roughly 101 million shares of Block due to its inclusion, equivalent to about 11 days of average trading volume, according to a note from Stephens.
Source: https://www.cnbc.com/2025/07/21/blocks-stock-pops-on-addition-to-sp-500-.html