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Reddit shares jump 11% in extended trading on S&P 500 inclusion
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Reddit shares surged 11% in extended trading on Thursday after S&P Dow Jones Indices announced the social media company will be added to the S&P 500 index. Reddit will join the benchmark index on August 18, replacing AvalonBay Communities Inc. The stock price increase is typical for companies added to major indexes, as fund managers tracking the benchmarks must purchase shares to align with the index changes. The announcement was accompanied by a video interview with Reddit CEO Steve Huffman discussing Q2 results and U.S. user growth.
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Reddit mascot rings the opening bell at the New York Stock Exchange (NYSE) in New York City, U.S., March 21, 2024. Brendan McDermid | Reuters
Reddit shares rose 11% in extended trading on Thursday following the social media company's inclusion in the S&P 500.
The company will join the S&P 500 on August 18, replacing AvalonBay Communities Inc., according to a S&P Dow Jones Indices announcement.
Companies often see their stocks climb when added to major indexes, as fund managers who track the benchmarks must purchase shares to align with the changes.
WATCH: Reddit CEO Steve Huffman on Q2 results: Investors are right to look at U.S. user growth
Watch Now VIDEO | 6:12 Reddit CEO Steve Huffman on Q2 results: Investors are right to look at U.S. user growth Squawk Box
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US Top News and AnalysisWestern
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Reddit Added to S&P 500, Shares Surge Over 10%