Marvell Technology's stock surged 5.51% in the after-hours session on Friday, reversing sharp intraday losses, after S&P Dow Jones Indices announced the chipmaker will be added to the S&P 500 index.
The inclusion is a significant milestone for the company, often leading to increased demand from index funds and other institutional investors that track the benchmark. The news provided a positive catalyst after the stock, along with the broader semiconductor sector, faced heavy selling pressure during the regular trading session.
Analysts had flagged Marvell as a leading candidate for inclusion in the quarterly rebalance, given its market capitalization has surged well above the minimum threshold. The formal announcement, made just after the market close, triggered immediate buying interest in the extended session.
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