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S&P made the announcement Thursday night, and shares of Modern (MRNA) jumped 10% Friday morning on the news. The stock is now up nearly 175% this year, giving Moderna a market valuation of over $ 100 billion.
Moderna’s addition to the S&P 500 means that the scores of passively managed mutual funds and exchange-traded funds that mirror the S&P 500 will need to add the company’s stocks to their portfolios. This is one of the main reasons the stock was exploding on Friday.
Moderna will replace drugmaker Alexion Pharmaceuticals, which is being taken over by Big Pharma giant AstraZeneca.
S&P said the index change would take effect before the market opens next Wednesday.
Moderna makes one of three coronavirus vaccines approved by the United States Food and Drug Administration. Pfizer (PFE) and BioNTech (BNTX) also make a two-dose vaccine similar to Moderna, while Johnson & johnson (JNJ) offers a single dose Covid shot.
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