COIN) surges more than 10% as it joins the S&P 500 index, replacing Discover Financial Services (DFS)

Coinbase (NASDAQ:) shares surged more than 10% in pre-market trading on Friday after the company confirmed it will join the S&P 500 index (NYSE:) later this month.

Coinbase (NASDAQ:COIN) will take the place of Discover Financial Services (NYSE:), which is being dropped from the S&P 500 and Capital One Financial (NYSE:) is set to join the index. The change will be made before trading begins on 19 May.

Coinbase met the requirements for inclusion in the S&P 500 with its latest financial report.

The company posted a net income of $65.6m, compared to an income of $1.18bn in the same period last year. This decline was largely driven by a $963m adjustment for the fair value of cryptocurrency investments.

Revenue for the period came in at $2.03bn, up 24% from $1.64bn a year ago. Analysts had anticipated a smaller net loss of $0.11 per share and revenue of $1.96bn.

The cryptocurrency exchange, the largest in the US, has increasingly become integrated into the broader US financial landscape. This expansion has occurred alongside a surge in bitcoin’s value and as large institutional players are granted regulatory approval for spot bitcoin exchange-traded funds.

Last week, bitcoin prices rose past the $100,000 mark, nearing the all-time high set in January. The cryptocurrency experienced a substantial rally following the news that the US and China had agreed to a temporary pause on new tariffs.

Amazon (NASDAQ:) shares were just under the flatline, still in correction territory, after a 7.6% rally in the previous session.

The world’s largest e-commerce company had previously announced a 9% decline in April sales, the steepest drop since the early days of the pandemic.

However, the US and China announced a six-month pause on new tariffs, a development that went beyond economists’ predictions.

Amazon (NASDAQ:) shares were among the most affected by the previous round of tariffs, considering that a significant portion of the products sold through its marketplace are imported from China. The higher import costs had raised concerns about increased consumer prices and declining sales.