(Reuters) - Robinhood Markets (HOOD) will replace casino operator Caesars Entertainment (CZR) in the benchmark S&P 500, marking a pivotal moment for the financial technology sector as the retail trading platform joins the ranks of the most influential U.S. companies.
The inclusion, announced by S&P Dow Jones Indices on Friday, is expected to boost demand for Robinhood's stock as index-tracking funds adjust their holdings. It also underscores Robinhood's evolution from a pandemic-era trading upstart to a company with sustained influence in the U.S. financial markets.
Credited with revolutionizing retail trading by eliminating commissions and making stock investing accessible through a user-friendly app, the platform has attracted a new generation of investors and reshaped how everyday Americans participate in financial markets.
Others set to join the S&P 500 are marketing platform AppLovin (APP) and mechanical and electrical construction services firm Emcor (EME). They will replace bond trading platform MarketAxess (NASD: MKTX) and solar inverter maker Enphase Energy (NASD: ENPH), respectively.
Inclusion in the S&P 500 typically boosts a company's stock price as passive funds and exchange-traded funds tracking the benchmark are forced to buy in, creating a demand surge.
Robinhood shares have more than doubled this year, giving the company a market capitalization of roughly $91.5 billion, according to data compiled by LSEG.
In May, crypto exchange Coinbase became the first digital asset firm to join the benchmark S&P 500, adding fresh legitimacy to the U.S. financial technology sector.
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