Reddit (RDDT) Jumped 13% on S&P 500 Inclusion. Will Index Demand Hold the Gain?

Reddit, Inc. shares rose 12.6% to $178.09 following the announcement that the company would be added to the S&P 500 before trading began later that week. J.P. Morgan estimated that index-tracking funds would need exposure equivalent to approximately 16.7 million Reddit shares, representing nearly three times the company’s average daily trading volume of 5.98 million shares since its initial public offering in March 2024.
The addition creates measurable near-term demand for the stock,