Shares in Robinhood Markets (HOOD) jumped 7.7% in pre-market trading on Monday morning, after it was announced that the trading platform would be joining the S&P 500 (^GSPC).
S&P Dow Jones Indices announced on Friday that Robinhood is set to be added to the US blue-chip index effective prior to the open of trading on Monday 22 September, to coincide with a quarterly rebalance.
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AppLovin (APP), which provides end-to-end software and artificial intelligence (AI) solutions for businesses, and construction company Emcor Group (EME) are also set to join the S&P 500.
The three stocks will replace MarketAxess Holdings (MKTX), Caesars Entertainment (CZR), and Enphase Energy (ENPH) in the index.
Shares in Robinhood are up nearly 172% year-to-date, as the company has benefitted from increased retail investor activity.
Electric vehicle maker Tesla (TSLA) remained in focus on Monday morning, after it was revealed on Friday that the company's board had proposed a pay package for CEO Elon Musk worth a potential $1tn (£740bn), if certain targets are met.
Shares in Tesla were up 1% in pre-market trading on Monday, after having risen 3.6% on Friday.
Tesla said in a regulatory filing on Friday that it would hand Musk shares worth as much as 12% of the company in a dozen separate packages if the company meets certain performance targets over the next decade.
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Following the news, Dan Coatsworth, investment analyst at AJ Bell (AJB.L), said: “Tesla is a public company, and shareholders will ultimately decide if he deserves a $1tn pay deal. Securing this money will be dependent on hitting targets and current progress suggests Musk will need a stroke of extraordinarily good luck to grab the 13-digit figure.
“Shareholders would love for Musk to hit the targets to trigger the payday, as they would also share in the success via a higher share price. Therefore, it feels like many investors would happily approve it.”
“The bigger question is whether this proposal sets a new precedent and boardrooms across America will think it’s ok to add a zero or two onto the end of current remuneration packages. It all seems a tad excessive and a symptom of poor corporate governance.”
In Hong Kong, shares in two major tech names popped on Monday, with Alibaba (9988.HK, BABA) up 4.5% and Baidu (9888.HK, BIDU) jumping 11%.
Bloomberg reported on Monday that Chinese investors bought a combined HK$13.5bn (£1.28bn) worth of Alibaba shares last week via the trading links between the mainland and Hong Kong, spending more than on any other stock.
