Overview
- S&P Dow Jones Indices said Friday it will add Coherent, EchoStar, Lumentum and Vertiv to the S&P 500 before trading on March 23, replacing Lamb Weston, Match Group, Molina Healthcare and Paycom Software.
- On Monday’s first full session after the announcement, Lumentum rose about 10% to 11% intraday and Vertiv gained roughly 7%, while Coherent and EchoStar posted more modest advances.
- Index inclusion typically compels passive funds and ETFs to purchase new constituents, producing a short-term inclusion bump that often concentrates around the effective date.
- Nvidia disclosed roughly $2 billion stakes in both Lumentum and Coherent earlier this month, reinforcing investor interest in the photonics suppliers tied to AI hardware demand.
- Lumentum’s recent results bolstered sentiment, with Q2 FY26 revenue of $665.5 million and non‑GAAP EPS of $1.67, and guidance for Q3 revenue of $780 million to $830 million.