Okta is joining the S&P 500, giving the cybersecurity company a place in one of Wall Street's most closely watched stock indexes -- and potentially a new pool of buyers for its shares.
S&P Dow Jones Indices said Friday that Okta will replace Kenvue, the maker of Tylenol and Band-Aid products, before trading begins Wednesday, Nov. 4.
Shares of Okta rose 3% in premarket trading Monday to $214.51. They have risen 141% this year.
Kimberly-Clark, which is already in the S&P 500, is acquiring Kenvue in a deal expected to close soon. When an acquisition removes a company from the stock market, S&P needs to fill the vacancy.
Okta, whose software helps companies manage passwords and secure access to online accounts, is moving up from the S&P MidCap 400 index. New members are chosen based on factors including company size, profitability, and how actively their shares trade.
The S&P 500 is more than a widely followed measure of U.S. stocks. Trillions of dollars are invested in mutual funds and exchange-traded funds that seek to copy its performance. S&P estimates that roughly $16 trillion was invested in funds tracking the index in 2025.
When a company joins the S&P 500, those funds generally need to buy its shares to match the index. That can drive trading activity and sometimes boost a newly added stock's price.
Okta's move also sets off a chain of changes in smaller indexes. Glaukos, which makes treatments for eye diseases, will leave the S&P Small Cap 600 to take Okta's place in the MidCap 400.
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