Why Did Interactive Brokers Plunge 74.69%? S&P 500 Exclusion Sparks Sell-Off

On June 18, 2025, Interactive Brokers Group experienced a significant drop of 74.69% in pre-market trading, sparking concerns among investors and analysts alike.

One of the key factors contributing to the decline is the recent exclusion of Interactive Brokers from the S&P 500 index. This decision has led to a 3.4% dip in the company's shares, as investors reassess the stock's value and future prospects. The exclusion from such a prestigious index can often lead to a sell-off, as many institutional investors and index funds are required to hold S&P 500 constituents.

Despite the setback, some analysts believe that this could present a buying opportunity for long-term investors. The company's fundamentals remain strong, and the exclusion from the S&P 500 may have created an attractive entry point for those willing to take a contrarian view. However, others caution that the market may take some time to stabilize, and it could be prudent to wait for further clarity before making significant investments.