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Block to Replace Hess in S&P 500 Index. Shares Jump on Admission News. - Barron's

1. XYZ will replace Hess in the S&P 500 index due to Chevron's acquisition. 2. Block shares rose 11% to $80.88 in after-hours trading post-announcement. 3. Robinhood and Applovin were surprising omissions from the index addition. 4. S&P Dow Jones Indices uses discretion in index additions with no strict formula.

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FAQ

Why Bullish?

The inclusion in the S&P 500 typically boosts visibility and attracts investment. Historical precedents show significant price increases for companies added to the index.

How important is it?

The S&P 500 inclusion is a strong indicator of market confidence, improving Block's overall visibility and potentially attracting new institutional investment.

Why Short Term?

Initial surges usually occur around the announcement and trading inclusion. Over time, the effect may stabilize as investors reassess value.

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