Block shares soar 10% on entry into S&P 500

Block shares jumped more than 10% in extended trading on Friday, as the fintech company get set to join the S&P 500, replacing Hess.

It’s the second change to the benchmark this week, after S&P Global announced on Monday that ad-tech firm The Trade Desk would be added to the S&P 500. Trade Desk is taking the place of software maker Ansys, which was acquired by Synopsys in a deal that closed on Thursday.

Hess’ departure comes just after Chevron completed its $54 billion purchase of the oil producer prevailing against Exxon Mobil in a legal dispute over offshore oil assets in the South American nation of Guyana.

Most changes to the S&P 500 take place during the index’s quarterly rebalancing. However, in the case of the closing of an acquisition, a company can be removed from the index and replaced off schedule. Last week monitoring software company Datadog took Juniper Networks’ place in the S&P 500 as part of the index’s quarterly change. 

Block’s addition brings further tech heft to an index that has been steadily moving in that direction in recent years, reflecting the market cap gains of companies across the sector. Block, which gained popularity as Square due to the rapid growth of the company’s payment terminals, has expanded into crypto, lending and other financial services.

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