US shares: Reddit surges 14% on S&P 500 inclusion, set to switch AvalonBay
Analysts at J.P. Morgan estimate index funds monitoring the S&P 500 would want to purchase 16.7 million Reddit shares.
That’s practically 3 times the inventory’s common every day buying and selling quantity of about 5.98 million shares for the reason that firm went public in March 2024, in accordance to LSEG information.
Reddit was buying and selling at $175.69, with shares value greater than $201 million altering fingers by 09:32 a.m. ET.
The inventory has fallen greater than 31% this yr via Thursday’s shut and is down greater than 42% from its all-time excessive reached in September 2025.
In its most up-to-date earnings report, Reddit mentioned uneven search-engine visitors harm U.S. consumer development within the second quarter, overshadowing an upbeat income forecast.
The modifications are efficient earlier than markets open on August 18.AvalonBay is being eliminated after agreeing in Could to an all-stock merger with Fairness Residential to kind a rental housing firm with an enterprise worth of $69 billion. The businesses have mentioned the deal is predicted to shut within the second half of 2026.
The mixed firm, to be referred to as Vivmark Residential, will stay in the S&P 500 after the merger is accomplished, S&P Dow Jones Indices mentioned.
Stephens analyst Melissa Roberts mentioned new S&P 500 additions have traditionally outperformed the benchmark from announcement to inclusion, with the largest beneficial properties coming the day after the announcement.
After inclusion, nonetheless, they’ve usually given again some beneficial properties and lagged the benchmark over the subsequent three months by about 2%.
