Jack Dorsey’s Block Joins S&P 500 as Funds Move $4.5 Billion in Shares

Block Inc. (NYSE: SQ) rose almost 10% in early trading on Monday after news that the company will be added to the S&P 500 index this week. The change reflects growing investor interest in financial technology companies and expands Block’s role in the U.S. economy.

The company, founded by Jack Dorsey in 2009 as Square, will replace Hess Corporation in the index. Hess is exiting the S&P 500 because of its merger with Chevron, a deal valued at $55 billion. The shift becomes official before markets open on Wednesday.

Index Funds Fuel Stock Demand

Joining the S&P 500 often leads to a wave of stock buying from funds that track the index. Analysts expect this could generate orders for about 54 million Block shares, based on fund rebalancing estimates.

Block’s market value is currently $44.8 billion, positioning it among the most significant payment technology companies in the U.S.

Market analysts say the company’s recent product development and broader marketing push have contributed to its stock movement. Some believe being added to the S&P 500 could support a higher valuation, as more institutional investors are now likely to buy into the company.

From Small Business Tools to Digital Assets

Block started as a payment solution for small businesses but has expanded far beyond point-of-sale devices. Its Cash Apphandles personal transfers, investments, and bitcoin transactions. The company also operates services focused on cryptocurrency, reflecting its long-term interest in blockchain-related technologies. In 2021, it rebranded from Square to Block Inc. to represent this broader strategy.

Stablecoin Law Could Support Growth in Digital Payments

A new law signed by President Donald Trump on Friday is expected to support growth in cryptocurrency-based payments. The legislation sets clear rules for dollar-backed stablecoins, which could lead to more use of digital money for everyday transactions.

Block, already active in crypto services, could benefit from this development as digital payments continue to expand beyond traditional card networks and cash.

Stock Still Lags in 2025

Despite Monday’s jump, Block’s stock remains down 14% for the year, compared to a 7% gain in the S&P 500 over the same period. The company has faced investor concerns over competition in the fintech space and regulatory questions surrounding crypto transactions.

This week’s inclusion in the index, however, could attract new investment flows and help reset expectations for the second half of the year.

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