MB200: S&P Rebalancing, Nvidia Takes Top Spot & What Next For UK Homebuilders

Neža Molk & Sam North discuss the S&P 500 rebalancing, Nvidia becoming the most valuable company in the world, and the consolidation happening among UK home builders.

Takeaways

The S&P 500 rebalancing involves adding three companies (KKR, CrowdStrike, GoDaddy) and removing three companies (Robert Half, Comerica, Illumina) from the index.
The rebalancing can have a positive market reaction for companies being added, as index funds and institutional investors need to buy shares to align with the updated index composition.
Companies being removed from the S&P 500 may experience selling pressure as index funds and other investors sell their shares, potentially leading to a decline in stock price.
Nvidia's success as the most valuable company in the world is driven by its position in the AI market and its record of innovation.
UK home builders are engaging in mergers and acquisitions to improve profitability and address challenges in the housing market, such as high mortgage rates and a shortage of materials and workers.
The outcome of the upcoming UK elections and potential changes in housing policies can significantly impact the growth potential of UK home builders.

Learn more about trading by visiting the eToro Academy home page where you can read reports, watch videos and sign up to our free trading course.

Your capital is at risk. Other fees apply. For more information, visit etoro.com/trading/fees. Past performance is not an indication of future results.

This communication is for information and education purposes only and should not be taken as investment advice, a personal recommendation, or an offer of, or solicitation to buy or sell, any financial instruments. This material has been prepared without taking into account any particular recipient’s investment objectives or financial situation, and has not been prepared in accordance with the legal and regulatory requirements to promote independent research. Any references to past or future performance of a financial instrument, index or a packaged investment product are not, and should not be taken as, a reliable indicator of future results. eToro makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication.