Palantir experiences a 13% increase in stock value following its addition to the S&P 500 index.

• Palantir's stock price surged on Monday and reached its highest point since early 2021 following the S&P Global's announcement on Friday that it would include the stock in the S&P 500 index.
• Palantir and Dell are joining the benchmark, replacing American Airlines and Etsy.
• During the June rebalancing, CrowdStrike was included in the index as a cybersecurity vendor.

The stock of shares popped 13% on Monday and is currently trading at its highest since early 2021 after the announcement on Friday that it will be added to the S&P 500.

Palantir is joining the index alongside . They are replacing and, S&P Global announced in a press release.

On Monday, Dell shares experienced a nearly 4% increase in value after being added to the benchmark, causing fund managers to update their portfolios to reflect the change.

In order to become a member of the S&P 500, a company must have earned a profit in its most recent quarter and have accumulated profits over the past four quarters. Palantir reported a net income of $135.6 million in the second quarter of 2023, an increase from $27.9 million in the same period the previous year. The company achieved profitability in the final quarter of 2022.

The S&P 500 has been seeing an increasing presence of tech companies, mirroring their growing economic importance. In June, cybersecurity vendor CrowdStrike was added to the index, followed by Super Micro Computer, which competes with Dell in selling servers for AI workloads, three months prior.

Palantir, which went public on the New York Stock Exchange in 2020, has a market cap of over $76 billion, significantly higher than the median market cap of companies in the S&P 500, which is approximately $33.5 billion. Its stock hit a closing high of $39 in January 2021.

On Monday, the shares reached a price of $34.30, which was approximately 14% below their peak.

— CNBC's Ari Levy contributed to this report

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