Shares of Palantir Technologies Inc (NYSE:PLTR) ended a busy day for the tech sector 14% higher after confirmation of its inclusion in S&P 500 index.
The announcement, made after markets closed on Friday, revealed that Palantir will be added to the prestigious index starting on September 23, along with Dell Technologies Inc (NASDAQ:DELL) and Erie Indemnity, replacing American Airlines Group Inc (NASDAQ:AAL), Etsy Inc (NASDAQ:ETSY) and Bio-Rad Laboratories Inc (NYSE:BIO).
To qualify for the S&P 500, a company must be US-based, have a market capitalisation of around $15 billion, and meet other requirements, including profitability and a free float threshold.
Stocks typically rise when added to major indexes, as institutional investors and index-tracking funds buy shares to match the updated holdings.
Palantir, a software company that specialises in data analytics and artificial intelligence, ended Monday up $4.26 at $34.60.