JP Morgan analysts estimated that index funds tracking the S&P 500 would need to buy 16.7 million Reddit shares. That is nearly three times the stock’s average daily trading volume of about 5.98 million shares since the company went public in March 2024, according to LSEG data.

Reddit shares traded at $180.38, with more than 10 million shares changing hands.

Despite Friday’s rally, the stock had fallen more than 31% this year through Thursday’s close and remained more than 42% below its record high reached in September 2025.

In its latest earnings report, Reddit said volatile search-engine traffic weighed on US user growth in the second quarter, overshadowing an upbeat revenue forecast.

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The index changes will take effect before markets open on August 18.
AvalonBay is being removed after agreeing in May to an all-stock merger with Equity Residential that will create a rental housing company with an enterprise value of $69 billion. The companies expect the transaction to close in the second half of 2026.The combined company, which will be named Vivmark Residential, will remain in the S&P 500 after the merger is completed, S&P Dow Jones Indices said.

Stephens analyst Melissa Roberts said companies newly added to the S&P 500 have historically outperformed the benchmark between their selection and inclusion, with the largest gains typically occurring the day after the announcement.

After joining the index, however, those stocks have generally surrendered some gains and underperformed the benchmark by about 2% over the following three months.

(Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times)