US Stock Market Move | Reddit (RDDT.US) will be included in the S&P 500 index and opened with a surge of over 13%.

On Friday, Reddit (RDDT.US) opened with a surge of more than 13%, currently reported at $180.85. In terms of news, Reddit is set to join the S&P 500 Index next week through a non-routine adjustment. S&P Dow Jones Indices announced that Reddit will officially be added to this benchmark index before the market opens on August 18. It will replace AvalonBay Communities (AVB.US), which is being acquired by another S&P 500 constituent, Equity Residential (EQR.US). J.P. Morgan analysts estimate that index funds tracking the S&P 500 will need to purchase approximately 16.7 million shares of Reddit stock. Stephens analyst Melissa Roberts noted that, historically, companies newly added to the S&P 500 tend to outperform the benchmark index from the announcement of their inclusion to the official addition, with the largest gains typically occurring the day after the announcement.