S&P 500 to Add Bloom Energy, Illumina, and Everpure in Quarterly Rebalance

Bloom Energy Corp., Illumina Inc., and Everpure Inc. are set to join the benchmark S&P 500 index, S&P Dow Jones Indices announced Friday after the market close. The move, part of a regular quarterly rebalancing, prompted immediate gains for the companies' shares in after-hours trading.

Key Index Changes

The update ensures the index accurately represents the U.S. large-cap equity market. The changes, which will take effect prior to the market open on Monday, September 21, are as follows:

• Added to S&P 500: Bloom Energy Corp. (BE), Illumina Inc. (ILMN), and Everpure Inc.
• Removed from S&P 500: Molson Coors Beverage Co. (TAP), The Trade Desk Inc. (TTD), and Builders FirstSource Inc. (BLDR).

Illumina and Everpure will be promoted from the S&P 400 MidCap Index. The three companies being removed from the S&P 500 will be reassigned to the S&P 600 SmallCap Index.

Market Reaction and Impact

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News of an index inclusion often triggers a rally as index-tracking funds are required to purchase shares of the new constituents. Following the announcement, Bloom Energy led the gains, jumping 7.5% in after-hours trading. Illumina rose 2%, while Everpure added 2.2%.

Conversely, shares of the departing Builders FirstSource fell 1.8% in post-market activity. The rebalancing forces passive investment funds, such as ETFs and mutual funds that mirror the S&P 500, to sell the outgoing stocks and buy the incoming ones to align their portfolios with the index's new composition.

Broader Index Reshuffle

S&P Dow Jones Indices also announced adjustments to other major benchmarks. Notably, the mega-cap S&P 100 Index will add Dell Technologies, Palo Alto Networks, Arista Networks, and Sandisk.

Additions to the S&P 400 MidCap Index will include HubSpot Inc., AGNC Investment Corp., Corcept Therapeutics, and Brinker International. Shares of HubSpot gained 4% in after-hours trading on the news of its promotion.