S&P 500 index futures expand pre-market gains to 0.2%

S&P 500 index futures expand pre-market gains to 0.2%

S&P 500 index futures expanded their pre-market gains by 0.2% on Tuesday, as investors reacted to the potential inclusion of Trade Desk Inc. (TTD) in the S&P 500 Index. The demand-side adtech platform provider's stock surged nearly 15% in the early premarket session, driven by the news of its upcoming addition to the S&P 500.

The inclusion of Trade Desk in the S&P 500 is set to replace Ansys Inc. (ANSS), following Ansys's acquisition by Synopsys (SNPS), which is expected to be finalized on July 17. The move will take effect before the opening of trading on July 18. The S&P 500 Index, a market-cap-weighted index of 500 leading companies, covers approximately 80% of the total market capitalization in the U.S.

If Trade Desk's premarket gains are sustained in the regular session, it is on track to have its best day since early May, when the company reported its first-quarter results. Retail sentiment toward Trade Desk stock turned 'extremely bullish' (91/100) on Stocktwits by early Tuesday, with message volume climbing to an 'extremely high' level [1].

Trade Desk was among the top 10 trending tickers on Stocktwits early Tuesday, with investors expressing bullish sentiments. A watcher on the platform noted, "I will be watching this main diagonal trendline now as the level to get over. If broken, we could see this thing drift back up into triple digits soon. Long overdue IMO." Another bullish watcher reshared their post from early June, forecasting a likely move to over $80 by the stock despite the Amazon (AMZN) threat.

Despite the recent gains, Trade Desk stock has been down nearly 36% year-to-date. Mobile ad tech platform AppLovin Corp.'s (APP) stock fell over 1.50% in the premarket session after failing to make it to the S&P 500 Index. Similarly, Robinhood Market Inc. (HOOD), which has seen a strong stock run this year, was also snubbed, with its shares slipping 0.68% in premarket trading.

A Stocktwits poll conducted earlier this month found that a majority (61%) of users wanted Robinhood to be added to the S&P 500. Trade Desk was not given as an option in the poll.

References:
[1] https://newsable.asianetnews.com/markets/trade-desk-ignites-retail-buzz-as-stock-on-track-for-best-day-in-2-months-on-news-of-s-p-500-inclusion-articleshow-al7r1cs