Block Replaces Hess in S&P 500 Index, Stock Jumps 10%

Block's stock surged around 10% in extended trading after S&P Dow Jones Indices announced it will replace Hess in the S&P 500 Index. Block's entry marks the second change to the benchmark index this week, following The Trade Desk's addition after Ansys' acquisition by Synopsys. Joining the S&P 500 can boost a company's stock, and Block's shares were down 14% for 2025 through Friday's close.

Block Inc.'s stock surged around 10% in extended trading on Monday, July 2, 2025, after S&P Dow Jones Indices announced it will replace Hess in the S&P 500 Index. The addition marks the second change to the benchmark index this week, following The Trade Desk's inclusion after Ansys' acquisition by Synopsys [1].

Block's entry into the S&P 500 comes as a significant milestone for the company, which operates a range of financial services, including digital payments and cryptocurrency exchange. The inclusion in the S&P 500 is likely to drive significant buying pressure as index funds tracking the S&P 500 will need to purchase shares of newly added companies. Block, with a market cap of approximately $30 billion, is set to join the index with a valuation that falls right in the middle of the S&P 500 [1].

The addition of Block to the S&P 500 represents a significant milestone for the company, providing it with greater visibility and liquidity, while potentially lowering its cost of capital. The move is also a reflection of the growing importance of financial technology companies in the broader market landscape.

The announcement by S&P Dow Jones Indices stated that Block will be added to the index prior to the opening of trading on Friday, July 5, 2025. The move replaces Hess, which was acquired by Chevron on July 1, 2025 [2]. This acquisition created an opening in the S&P 500, and Block is the second company to fill the slot this week.

Block's stock has taken a hit this year, with the stock down 14% in 2025 through Friday's close. However, the company has seen substantial growth in previous years, with a 45% jump in 2024 and a 30% increase in 2023. The company was founded in 2011 and went public on the Nasdaq in 2015, with its headquarters in San Francisco [1].

References:
[1] https://www.cnbc.com/2025/07/02/block-stock-surges-as-sp-500-index-announces-replacement-of-hess.html
[2] https://www.tradingview.com/news/DJN_DN20250702008423:0-block-rises-on-sp-500-inclusion/