Keefe, Bruyette & Woods (KBW) has indicated that upcoming changes to the S&P 500 Index, set to be announced on September 4 and effective September 18, may create opportunities for new companies to join. The firm anticipates nine merger-related adjustments across the S&P 1500, which includes the S&P 500, S&P Midcap 400, and S&P Smallcap 600.
Notably, Rocket Companies is currently the sixth-largest eligible company for the S&P 500 and the largest financial stock in this category. KBW assigns a medium probability for Rocket's inclusion during the third-quarter rebalancing and a medium- to high likelihood for future quarters.
Similarly, Affirm Holdings, known for its buy now, pay later services, also has a medium probability of being added to the index. Inclusion in the S&P 500 typically leads to increased demand for a company's shares, as index-tracking funds must purchase the newly added stocks.
This follows the recent addition of Marvell Technology and Flex to the index, which replaced Pool Corp and Campbell's Company