Blackstone stock got a boost after it as chosen to enter the S&P 500.
Getting added to the
is a big deal. For proof, look no further than Blackstone stock.
S&P Dow Jones Indices announced after Friday’s close that Blackstone would replace Lincoln National in the S&P 500 on Sept. 18. It’s been a long time coming. In April, the index provider announced that it would allow companies with multiple share classes to be part of its benchmarks, reversing a rule that went into effect in 2017 (companies like
(META) to stay in the index).
Blackstone stock jumped 4.9% on the day of the announcement, as many assumed that it would be the next company to join the index. But it dropped in May, when it was passed over in favor of
(AXON), the maker of Tasers, and then again in June, when
Palo Alto Networks
(PANW) went in instead.
This time, Blackstone got the call to replace
(LNC), and its stock is reacting exactly as you’d imagine—it’s up 3.8%. That makes sense. Every exchange-traded fund or index fund that tracks the index will have to buy it, and every active manager benchmarked to the index will have to consider purchasing it. The same is true for
(ABNB), whose stock has…