A “POSSIBLE” add to NASDAQ 100
AI Service company Palantir (PLTR) joined the S&P 500 on September 23, 2024.
The announcement – on September 9 - sparked an aggressive rally that drove prices 25% higher ahead of the S&P 500 rebalance.
Notably, Palantir recently announced their move from the NYSE to the Nasdaq Exchange. Speculation – which is likely to be correct – is that the company executed the move in order to be considered for the upcoming Nasdaq 100 Rebalance.
Here are the Benefits of Being in the Nasdaq 100
1. Index Fund Buying Pressure: The Nasdaq-100 is tracked by numerous index funds and ETFs like the Invesco QQQ (QQQ). When a stock is added, these funds must buy the stock to replicate the index, creating significant demand pushing the price higher.
1. Increased Visibility and Credibility: Inclusion in the Nasdaq-100 signals that the company is among the largest and most influential in the Nasdaq exchange. This increases investor confidence and attracts more attention from retail and institutional investors.
1. Improved Liquidity: Stocks in major indices tend to see higher trading volumes. This improved liquidity makes the stock more attractive to large institutional investors, which can also drive the price higher.
1. Momentum Effect: Stocks that join a major index often benefit from a positive momentum effect. Investors may perceive the inclusion as a signal of strong fundamentals or future growth potential.
# This is not a confirmation. Please make sure you do your own research. I only wish everyone makes lots of money in the process!!! Good luck guys!
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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