Trade Desk Stock Jumps After Company Added to S&P 500

Trade Desk has a market value of more than $40 billion. (Dreamstime)

Trade Desk will be added to the S&P 500 index prior to the opening of trading on Friday.

It will replace Ansys , which is being purchased by S&P 500 constituent Synopsys on Thursday, according to S&P Dow Jones Indices.

Shares of Trade Desk, which provides a platform for advertising buyers, were sharply higher in premarket trading Tuesday, up 15% to $86.79, after being little changed in regular trading Monday. The news was released after 5 p.m. Eastern time.

Trade Desk has a market value of more than $40 billion.

Shares of companies added to the S&P 500 often rally ahead of their additions as investors anticipate buying by index funds.

Write to Andrew Bary at andrew.bary@barrons.com