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Facebook shares jump on news it will be added to S&P 500
Facebook shares jump on news it will be added to S&P 500

SAN FRANCISCO -- Facebook shares rose Thursday on news that the giant social network will be added to the Standard & Poor’s 500 index next week. S&P Dow Jones Indices made the announcement Wednesday that Facebook will replace Teradyne Inc. on the index after the market closes on Dec. 20. Facebook will also join the S&P 100 index, replacing Williams Cos., cementing its rise as one of the nation’s most powerful tech companies. When a stock is added to a major index, its shares usually rise, because investment funds that track the index must buy shares. Min Moon of J.P. Morgan’s Quantitative & Derivatives Strategy estimated that investors would need...

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