Block (XYZ.US) was included in the S&P 500 index, and its stock price surged over 10% after hours.

American Financial Group, Inc. technology company Block (XYZ.US) will be officially included in the S&P 500 index before the opening on July 23, replacing the energy company Hess, which was recently acquired. After the announcement, Block's stock price surged over 10% in after-hours trading on Friday. This is the second adjustment of the S&P 500 index constituents this week. Previously, S&P Dow Jones Indices announced that advertising technology company The Trade Desk (TTD.US) will replace software manufacturer ANSYS, Inc., which was acquired by Synopsys, Inc., as a new constituent. The change of Block replacing Hess this time is due to Chevron Corporation (CVX.US) completing the acquisition of Hess for up to $54 billion. Despite legal disputes with Exxon Mobil Corporation (XOM.US) over the ownership of offshore oil assets in Guyana, Chevron Corporation eventually successfully completed the transaction. Although most index adjustments occur during quarterly rebalancing periods, temporary changes to the constituents of the S&P 500 also occur at non-routine times, such as when major acquisitions are completed. For example, last week, Datadog (DDOG.US) replaced Juniper Networks, Inc., which was delisted due to acquisition, as a member of the index. The addition of Block further strengthens the weight of the technology sector in the S&P 500. In recent years, with the continuous expansion of the market value of large technology companies, technology has become one of the most representative sectors of the index. Block, originally known as "Square," gained popularity with its convenient mobile payment terminals and quickly rose to prominence. In recent years, its business has expanded to include cryptocurrency, lending, and other financial services. Founded by Twitter co-founder Jack Dorsey in 2009, the company was officially renamed Block in 2021, highlighting its long-term layout and development vision for blockchain technology. Although Block's stock price has fallen by about 14% this year, which is far below the market performance, the Nasdaq index has risen by over 8% year-to-date, and the S&P 500 has risen by about 7%. However, Block's current market value of about $45 billion is still much higher than the median level of the index constituents.