Block (XYZ) Replaces Hess in S&P 500
Block Inc. (XYZ), formerly known as Square, will officially join the S&P 500, replacing Hess Corp. following the completion of Hess’s acquisition by Chevron. The change will take effect before the market opens on Wednesday, July 23, 2025.
📊 Key Details
| Item | Detail |
|---|---|
| New Entrant | Block Inc. (Ticker: XYZ) |
| Replaced | Hess Corp. (Ticker: HES) |
| Effective Date | Wednesday, July 23, 2025 (before market open) |
| Reason for Change | Hess acquired by Chevron |
| Market Cap (Block) | ~$43 billion |
| Index Maintainer | S&P Dow Jones Indices |
📈 Market Reaction
- Block stock surged over 9% in after-hours trading after the announcement.
- The rally is driven by expected inflows from index funds tracking the S&P 500.
🔍 Why Block?
Despite having a smaller market cap than other contenders, Block met S&P’s criteria:
- Strong profitability and liquidity
- U.S.-domiciled and listed on a major exchange
- Public float and sector representation suitable for index balance
Potential Future S&P 500 Candidates
These companies may still be considered for future openings.
- Robinhood ($93B)
- AppLovin ($123B)
- Ares Management
- Carvana
- Cheniere Energy
📝 Final Take
Block’s inclusion shows that S&P committee decisions go beyond market cap, factoring in fundamentals, structure, and balance. While Robinhood and AppLovin remain top candidates, Block is the one getting the passive inflows and institutional spotlight—for now.