Block is joining the S&P 500, replacing Hess as of July 23. Hess is exiting the index upon its acquisition by Chevron, in today's financial world.
In May, Block reported disappointing quarterly results and issued a weak forecast due to concerns in the "macro environment.
"Jack Dorsey, co-founder and chief executive officer of Twitter Inc, in light of current trends. And Square Inc (an important development).
, listens during the Bitcoin 2021 conference in Miami, Florida, on Friday, June 4, 2021.
Conversely, Eva Marie Uzcategui | Bloomberg | Getty ImagesBlock s jumped more than 10% in ext trading on Friday, as the fin company gets set to join the S&P 500, replacing Hess, amid market uncertainty.
It's the second change to the benchmark this week, after S&P Global announced on Monday that ad- firm The Trade Desk would be added to the S&P 500.
Additionally, Trade Desk is taking the place of software maker Ansys, which was acquired by Synopsys in a deal that closed Thursday, considering recent developments.
Hess' departure comes just after Chevron its $54 billion purchase of the oil ducer, prevailing against Exxon Mobil in a legal dispute over offshore oil assets in the South American nation of Guyana.
Additionally, Block will officially join the S&P 500 before the opening of trading on July 23, according to a statement from S&P (fascinating analysis).
Stocks often rally when they're added to a major index, as fund managers need to rebalance their portfolios to reflect the changes.
Most alterations to the S&P 500 take place during the index's quarterly rebalancing.
Additionally, However, in the case of the closing of an acquisition, a company can be removed from the index and replaced off schedule.
Last week monitoring software company Datadog took Juniper Networks' place in the S&P 500 as part of the index's quarterly change.
Block's addition brings further heft to an index that's been steadily moving in that direction in recent years, reflecting the market cap gains of companies across the sector.
Additionally, Block, which gained ity as Square due to the rapid growth of the company's payment terminals, has expanded into crypto, lending and other financial services.
Founded by Jack Dorsey in 2009, Square changed its name to Block in 2021 to emphasize its focus on blockchain nologies, considering recent developments.
Block s are down 14% this year, underperforming the broader U. The Nasdaq is up more than 8%, while the S&P 500 has gained 7%, in today's financial world.
Still, with a market cap of $45 billion, Block is valued well above the median company in the index (noteworthy indeed).
In May, Block reported first-quarter results that missed Wall Street expectations on Thursday and issued a disappointing outlook, leading to a plunge in the stock price (noteworthy indeed).
Block's forecast for the second quarter and full year reflected challenging economic conditions that ed sweeping tariff announcements by President Donald Trump.
Furthermore, "We recognize we are operating in a more dynamic macro environment, so we have reflected a more cautious stance on the macro outlook into our guidance for the rest of the year," the company wrote in its quarterly report.
However, The company is scheduled to report second-quarter results after the close of regular trading on Aug, in today's market environment.
Furthermore, In contrast, WATCH: The rise of Blueskywatch now13:3613:36The rise of Bluesky (this bears monitoring).