Datadog Joins S&P 500 Index, Stock Surges 10% Amid Tech Sector Growth

Datadog, a software company, is set to be added to the S&P 500 index next week, marking a significant milestone for the organization and sending its shares soaring on the stock market. This inclusion comes as Datadog replaces Juniper Networks Inc., which was recently acquired by Hewlett Packard Enterprise Co. This strategic move highlights Datadog's growing importance within the technology sector and is a positive signal for investors. In related stock market activity, FedEx (FDX) has been double upgraded to 'outperform' by BNP Paribas Exane, with the broker noting the stock as arguably oversold and anticipating FedEx's relative operational outperformance compared to rival UPS, which was upgraded from 'underperform' to 'neutral.' Additionally, companies like Synopsys (SNPS) and Cadence Design experienced gains of 6.1% in premarket trading after the US lifted export license requirements for chip design software sales in China, allowing these firms to resume services in the world's second-largest economy. The combined market movements reflect both sectoral shifts and broader economic factors. The inclusion of Datadog in the S&P 500 is especially significant as it underscores the company's growth and influence within the software industry and implies greater visibility and investment interest. Immediate outcomes include a sharp increase in Datadog's stock price as investors respond to the announcement, as well as broader optimism in software and logistics stocks due to regulatory and operational developments. There are ongoing developments in monitoring how the shift will affect Datadog's market performance and its impact on peers like Synopsys and FedEx. No direct quotes were provided in the original content, but analyst commentary from BNP Paribas Exane emphasizes FedEx's favorable outlook.

On July 3, 2025, the stock price of Datadog experienced a significant 10% jump following the announcement that it would be added to the S&P 500 index effective before trading begins on July 9, 2025. This inclusion was announced by S&P Global, the entity responsible for maintaining the index. The event reflects the ongoing expansion and increased representation of the technology sector within the S&P 500, as the industry continues to penetrate various aspects of society.

At the same time, Hewlett Packard Enterprise (HPE), another S&P 500 constituent, completed its $13.4 billion acquisition of Juniper, a company specializing in data center networking hardware. This acquisition faced initial opposition from the U.S. Department of Justice, but a settlement was reached over the weekend, with HPE agreeing to divest its global Instant On campus and branch business as part of the agreement.

Despite Datadog underperforming the broader tech sector earlier in the year—with its stock down 5.5% compared to the Nasdaq's 5.6% gain—it maintains a strong market capitalization of $46.6 billion, substantially above the median for the S&P 500. Stocks typically rally upon inclusion in major indices because fund managers must adjust their portfolios accordingly. The elevated market cap and sector growth underpin Datadog's importance within the evolving tech landscape. This development coincided with Datadog’s presence at the AWS Summit Seoul 2024, held on May 16, 2024, highlighting its global footprint in cloud computing and data monitoring.

Overall, Datadog’s addition to the S&P 500 illustrates the continued dominance and growing influence of technology companies in the index, while HPE's acquisition underscores ongoing consolidation within the tech hardware sector. These changes reflect broader trends in market dynamics and regulatory negotiations shaping the tech industry today.