In the quarterly rebalancing of the S&P 500, tech companies Dell and Palantir were added to the benchmark index.
Their inclusion comes after tech companies Super Micro and CrowdStrike joined the index earlier this year.
Dell was previously a member of the index until the company was taken private in 2013 in a deal led by founder Michael Dell.shares both surged about 7% in extended trading on Friday after S&P Global announced that the two technology companies would join the S&P 500 U.S. stock index. This won't be Dell's debut in the index. The computer and server maker was a constituent from 1996 to 2013, as founder Michael Dell and private-equity firm Silver Lake took the company private. Dell went public again in 2018., which competes with Dell in selling servers for AI workloads, joined the S&P 500 earlier this year following a historic rally in the stock that has pushed the company's market cap past $50 billion. Its value has since been sliced in half.
After operating as a venture-backed startup for over a decade, Palantir went public on the New York Stock Exchange in 2020, and in the fourth quarter of 2022, the company started posting profits. In theShares of companies added to the benchmark often rally after the announcement because fund managers who track the index regularly update their portfolios to mirror the additions.
The additions are a better reflection of U.S. stocks with high market capitalizations, S&P Global said. The median market cap of companies in the index is about $33.5 billion. Palantir has a market cap of over $67 billion, while Dell is valued at over $72 billion.
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