Investing.com -- Okta Inc (NASDAQ:OKTA) shares climbed 2.1% in extended trading Friday after S&P Dow Jones Indices selected the identity and access management provider to join the benchmark S&P 500 index. The after-hours rebound helped the cybersecurity firm pare steep regular-session losses, following a more than 6% drop earlier in the day amid a widespread selloff across technology equities.
The transition takes effect prior to the opening bell on Wednesday, November 4, when Okta will replace consumer health giant Kenvue Inc (NYSE:KVUE). The reshuffling comes as Kenvue prepares to be acquired by fellow S&P 500 constituent Kimberly-Clark Corp (NASDAQ:KMB), pending final closing conditions.
Joining the flagship gauge represents a key institutional milestone for Okta, whose cloud-based access control platform serves as a critical digital gatekeeper for enterprise software ecosystems. Inclusion typically serves as a near-term liquidity catalyst, as passive index funds and exchange-traded portfolios benchmarked to the S&P 500 must acquire shares to match the index's weighting.
The reshuffle triggered a broader cascade across domestic equity benchmarks, elevating ophthalmic medical technology specialist Glaukos Corp (NYSE:GKOS) from the S&P SmallCap 600 to replace Okta in the S&P MidCap 400. In turn, equipment rental provider McGrath RentCorp (NASDAQ:MGRC) will take Glaukos's vacated seat in the SmallCap 600, sending McGrath shares up 2.8% in late trade.
Separately, aerospace and defense supplier Loar Holdings LLC (NYSE:LOAR) gained 3.5% after-hours following its tapping to join the S&P SmallCap 600. Loar replaces data enablement firm Liveramp Holdings Inc (NYSE:RAMP), which is being acquired by advertising conglomerate Publicis Groupe SA in a transaction expected to close shortly.
Original Article
Okta jumps after-hours following tapped inclusion in the S&P 500
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