Robinhood Markets Plunges 6% After S&P 500 Exclusion

On June 9, 2025, Robinhood Markets experienced a significant drop of 5.72% in pre-market trading, reflecting a notable decline in investor sentiment.

Robinhood, once considered a strong contender for inclusion in the S&P 500, faced a substantial setback as its stock price tumbled by over 6% in after-hours trading. This decline was primarily attributed to the announcement that the company had not been selected for inclusion in the prestigious index.

The news of Robinhood's exclusion from the S&P 500 had a ripple effect, causing a sharp drop in its stock price. This development underscores the market's sensitivity to such index-related decisions and highlights the importance of such inclusions for a company's valuation and investor confidence.