Why Did Robinhood Stock (HOOD) Jump This Week?
Shares of Robinhood Markets (NASDAQ: HOOD) soared this week, finishing up 13.6%. The jump comes as the S 500 and the Nasdaq-100 gained 1.6% and 1.9%, respectively.
The online-trading platform and favorite of retail traders saw its shares soar this week following the official announcement of its inclusion in the S&P 500.
The company will officially join the S 500 index before markets open on Sept. 22, taking the place of Caesars Entertainment. The index undergoes regular rebalancing, adding and removing companies. When stocks get the nod, they typically experience a surge as fund managers purchase shares to align their holdings with the index, generating immediate buying pressure.
Source Fool.com
