<p>Smith Collection / Gado / Getty Images</p>

Smith Collection / Gado / Getty Images

Key Takeaways

  • Shares of Palantir Technologies, Dell Technologies, and Erie Indemnity all gained Monday morning after it was announced they were being added to the S&P 500.
  • Shares of firms included in the S&P 500 often get a bounce because they are purchased by investors who put their money in S&P 500 index funds.
  • The companies will be replacing American Airlines Group, Etsy, and Bio-Rad Laboratories.

Shares of Palantir Technologies (PLTR), Dell Technologies (DELL), and Erie Indemnity (ERIE) all gained Monday morning after it was announced they were being added to the S&P 500 Index.

S&P Global, which operates the index, made the announcement on Friday, noting that the three would be part of the S&P 500 prior to the start of trading September 23. Shares of firms included in the S&P 500 often get a bounce because they are purchased by investors who put their money in S&P 500 index funds.

American Airlines, Etsy, Bio-Rad Being Replaced in S&P 500

The companies will be replacing American Airlines Group (AAL), Etsy (ETSY), and Bio-Rad Laboratories (BIO). American Airlines and Bio-Rad will now be part of the S&P MidCap 400 index, while Etsy will be part of the S&P SmallCap 600 index.

S&P Global explained that the changes were part of its quarterly rebalancing to ensure that each of its various indexes are “more representative of its market capitalization range.”

Read the original article on Investopedia.