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Major Index Changes: What You Need to Know

In a significant update from S&P Dow Jones Indices, a wave of changes coming to the S&P 500, S&P 100, S&P MidCap 400, and S&P SmallCap 600 indices has been announced, effective March 24, 2025. This quarterly rebalance aims to ensure that the indices accurately reflect the market capitalization ranges of their respective segments, enhancing their representativity in the financial market.

Key Changes to the S&P 100

The S&P 100 will see three companies joining its ranks, all focused on mega-cap representation. The newcomers are:

• - Palantir Technologies Inc. (NASDAQ: PLTR) in the Information Technology sector.
• - Intuitive Surgical Inc. (NASDAQ: ISRG) under Health Care.
• - ServiceNow Inc. (NYSE: NOW) also in Information Technology.

Replacing these giants will be Dow Inc. (NYSE: DOW), The Kraft Heinz Company (NASDAQ: KHC), and Ford Motor Co. (NYSE: F), which, while prominent, no longer fit the mega-cap category adequately.

Changes in the S&P 500

The S&P 500 will welcome several noteworthy additions, including:

• - DoorDash Inc. (NASDAQ: DASH) representing the Consumer Discretionary sector.
• - TKO Group Holdings Inc. (NYSE: TKO) from Communication Services.
• - Williams-Sonoma Inc. (NYSE: WSM) and Expand Energy Corp. (NASDAQ: EXE), also part of Consumer Discretionary and the Energy sector, respectively.

This reshuffling replaces companies viewed as less representative of the current market landscape, such as BorgWarner Inc. (NYSE: BWA), Teleflex Inc. (NYSE: TFX), Celanese Corp. (NYSE: CE), and FMC Corp. (NYSE: FMC). The shifts are indicative of evolving market trends, reflecting the growing importance of delivery services and renewable energy.

Changes to MidCap and SmallCap Indices

The S&P MidCap 400 will see the addition of several companies that align well with mid-cap performance metrics:

• - VF Corp. (NYSE: VFC) in Consumer Discretionary,
• - Alaska Air Group Inc. (NYSE: ALK) in Industrials,
• - Hims & Hers Health Inc. (NYSE: HIMS) in Health Care.

On the other hand, the S&P SmallCap 600 will replace companies such as Hims & Hers Health Inc., along with newcomers such as Bath & Body Works Inc. (NYSE: BBWI) and ATI Inc. (NYSE: ATI).

This sort of restructuring not only impacts the companies involved but also reflects broader market trends and investor sentiment in various sectors, particularly as companies pivot towards emerging industries and technologies.

Conclusion

As these changes take effect, investors and market watchers alike will need to keep an eye on how these indices perform moving forward. Monitoring the shifts will provide insights into market dynamics and can aid investors in making informed decisions regarding their portfolios. The quarterly rebalancing is not just a mere formality; it acts as a barometer for current economic trends and sector performance, reminding us how crucial it is to stay aligned with market sentiments. For more information on S&P Dow Jones Indices and their operations, visit www.spdji.com.