Matthew Griffin

Fri, Jun 6, 2025, 1:09 PM2 min read

(Bloomberg) -- Robinhood Markets Inc. shares extended gains into a sixth straight day as investors speculate that the online brokerage could become the latest firm to earn a coveted spot in the S&P 500 Index.

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Wall Street firms including Bank of America Corp. and Barclays Plc have called the company a top candidate to join the benchmark, a distinction that would spur passive funds to snap up its shares. The rebalancing is set to be announced after the close of regular trading Friday. Robinhood shares rose 3.3% in the session, bringing their gain to 17% over six trading days.

“It does seem like the speculation about the stock being included in today’s S&P 500 announcement is having the bigger impact,” said Matt Maley, chief market strategist at Miller Tabak + Co. “With so much money invested in index funds and index ETFs today, the stocks involved will rally no matter what.”

Ares Management Corp., AppLovin Corp., and Tradeweb Markets Inc. are among other companies that analysts have flagged as possible additions. Barclays analyst Benjamin Budish said the S&P 500 has added an average of 1.5 new companies in the June quarter, either through additions or promotions from its other indexes.

Fellow new-finance player Coinbase Global Inc. received a dramatic boost when its inclusion was announced last month. The stock jumped 24% in the next trading session on its way to a 34% weekly gain. Robinhood, meanwhile, has jumped more than 100% this year and, on Tuesday, closed at a record for the first time since 2021.

“Stocks selected for index inclusion typically experience 7%+ gains into the first day of trading,” Budish wrote in a note to clients. “However, the stocks appear to sell off by about 1.4% on average in the first week following index inclusion, and are down about 1% in the following 4 weeks.”

Other stocks linked to cryptocurrencies also advanced Friday as US labor data boosted appetite for risk and lifted digital tokens. Coinbase rose 2.9%, while Bitcoin was trading above $104,000.

--With assistance from Monique Mulima.

(Updates shares throughout, Bitcoin price in final paragraph.)

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