The Nasdaq 100 has announced that Palantir Technologies Inc (NYSE:PLTR), MicroStrategy Incorporated (NASDAQ:MSTR) and Axon Enterprise Inc (NASDAQ:AXON) will be joining the index as part of its annual reconstitution.
These three companies will be added to the index before the stock market opens on December 23, replacing Illumina Inc (NASDAQ:ILMN, ETR:ILU), Super Micro Computer Inc (NASDAQ:SMCI) and Moderna Inc (NASDAQ:MRNA, ETR:0QF).
Shares of Bitcoin proxy MicroStrategy traded higher on the news, adding 3.5% at $422 in early trade on Monday.
After initially rising, weapon-maker Axon was down 4.6% at $615. Software firm Palantir also shed 5.6% at about $72.
Of the firms being removed from the index, Super Micro Computer traded down 5.1%, and Illumina and Moderna had both added 1%.
The Nasdaq 100 consists of 100 of the largest non-financial companies listed on The Nasdaq Stock Market.
It serves as a benchmark for financial products like options, futures, and funds and is reconstituted annually in December.