Investing.com -- S&P Dow Jones Indices announced a series of benchmark rebalancings on Thursday afternoon, driving targeted after-hours gains in newly elevated components. The adjustments, effective prior to the market open on Tuesday, Oct. 6, reflect ongoing corporate M&A activity and capital structure transformations across several sectors.
Cloud communications software maker Twilio Inc Class A (NYSE:TWLO) will join the flagship S&P 500, moving up from the S&P MidCap 400. Twilio replaces Warner Bros Discovery Inc (NASDAQ:WBD), which is being acquired by S&P 500 constituent Paramount Skydance Corp (NASDAQ:PSKY) in a deal nearing final completion.
Twilio shares rose 1.6% in extended trading following the announcement, reflecting expected buying demand from index-tracking funds. Meanwhile, semiconductor test equipment producer FormFactor Inc (NASDAQ:FORM) will fill Twilio's former spot in the S&P MidCap 400 as it shifts up from the S&P SmallCap 600.
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The small-cap benchmark will in turn absorb SaaS platform Workiva Inc (NYSE:WK), which replaces FormFactor. Shares of Workiva gained 2.7% after-hours on the news, while other affected equities posted muted price reactions.
In a separate structural shift, newly formed Consumer Staples entity Vylor Inc. joined the S&P 500 on Thursday following its spinoff from Corteva Inc (NYSE:CTVA). Post-separation, Corteva will transition into the S&P MidCap 400 on Oct. 6 to better align with its updated market capitalization profile.
Corteva takes the spot of Olin Corporation (NYSE:OLN), which moves to the S&P SmallCap 600 to replace chipmaker Qorvo Inc (NASDAQ:QRVO). Qorvo is being acquired by Skyworks Solutions Inc (NASDAQ:SWKS) in an pending transaction that prompted the chain of small-cap reallocations.
Original Article
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