The Trade Desk is poised to make a significant leap in the financial world as it prepares to join the prestigious S&P 500 index before trading begins on Friday, July 18, 2025. This move comes as the digital advertising company will replace Ansys, a software maker currently in the index, marking a notable shift in the composition of one of the most closely watched benchmarks in the stock market.
The announcement by S&P Dow Jones Indices on Monday, July 14, 2025, set the stage for this transition, confirming that The Trade Desk (TTD) will officially take Ansys’ (ANSS) spot in the index. This change is closely tied to the impending acquisition of Ansys by Synopsys (SNPS), a chip design software provider. Synopsys is expected to complete its $35 billion purchase of Ansys on Thursday, July 17, 2025, following regulatory approval from Chinese authorities, which cleared the final hurdle for the deal.
The Trade Desk’s stock responded enthusiastically to the news, surging more than 9% on Tuesday, July 15, 2025. This rally is particularly noteworthy given the company’s challenging year; shares had fallen over 35% earlier in 2025 before this announcement. The inclusion in the S&P 500 is often seen as a catalyst for stock appreciation, as it introduces the company to a broader investor base, including index funds that track the S&P 500 components.
Market watchers have noted that joining the S&P 500 can be a game-changer for companies like The Trade Desk. It often means increased visibility and credibility, which can attract institutional investors and boost liquidity. As one of the leading players in digital advertising technology, The Trade Desk’s inclusion reflects its growing prominence in the tech sector.
Meanwhile, Ansys, despite its exit from the S&P 500, showed strong price performance leading up to the transition. On July 14, 2025, Ansys earned an upgrade to its Investor’s Business Daily (IBD) Relative Strength Rating, moving from 78 to 82, signaling robust momentum in its stock even as it prepares to be acquired. This rating upgrade highlights investor confidence in Ansys’ value, even amid corporate changes.
The acquisition by Synopsys represents a major consolidation in the chip design software industry. Synopsys’ successful navigation of regulatory approvals, including from Chinese regulators, underscores the global scale and complexity of such deals. The $35 billion transaction is expected to close on Thursday, July 17, 2025, just a day before The Trade Desk’s official entry into the S&P 500.
Interestingly, the decision to include The Trade Desk comes amid other notable shifts within the S&P 500. Just last week, Datadog (DDOG), a cloud monitoring and security company, was added to the index following Hewlett Packard Enterprise’s (HPE) acquisition of Juniper Networks, another S&P 500 component. These changes reflect the dynamic nature of the market, where mergers, acquisitions, and evolving business landscapes continually reshape the index’s makeup.
One notable company that missed out on this latest S&P 500 opportunity is Robinhood Markets Inc. Despite its high profile and repeated attempts, Robinhood was passed over in favor of The Trade Desk. This decision highlights the competitive and selective nature of index inclusion, where companies must meet stringent criteria and timing often plays a critical role.
The Trade Desk’s rise to the S&P 500 is a testament to its resilience and growth in the face of recent stock declines. The digital advertising firm has carved out a significant niche, providing technology that helps advertisers optimize their campaigns across various platforms. Its inclusion in the index not only validates its business model but also positions it for greater market recognition and potential investment inflows.
Looking ahead, The Trade Desk’s entry into the S&P 500 on July 18, 2025, will be closely watched by investors and analysts alike. The move is expected to bring fresh attention to the company and could mark a turning point in its market trajectory. Meanwhile, the completion of Synopsys’ acquisition of Ansys will reshape the competitive landscape in chip design software, signaling a new chapter for both companies.
In the ever-evolving world of stock indices, these developments underscore how corporate actions and market dynamics intertwine to influence investment trends and opportunities. The Trade Desk’s ascent is a vivid example of how strategic growth and market positioning can lead to inclusion in one of the most influential financial benchmarks, setting the stage for its next phase of growth.
