Enphase Energy Tumbles After Removal From S&P 500 Index
Shares fall as the solar technology company is replaced by AppLovin and Emcor Group in the benchmark index, triggering forced selling from funds.
Enphase Energy (ENPH) shares saw a notable decline in trading after S&P Dow Jones Indices announced the company will be dropped from the prestigious S&P 500. The stock fell 1.3% in morning trading following the news of its impending removal from the widely tracked benchmark.
The removal, effective September 22, 2025, is part of a regular rebalancing of the index. The primary driver of the stock's decline is the anticipated selling pressure from index funds. These funds, which replicate the S&P 500's composition for investors, will now be required to sell their holdings of Enphase Energy. This forced liquidation creates a temporary supply-demand imbalance that often weighs heavily on the stock's price.
According to market reports, the change was part of a broader index reconstitution. While Enphase faced downward pressure, the companies being added to the index experienced the opposite effect. and infrastructure firm Emcor Group (EME) also climbed upon the announcement of their inclusion. This dynamic is typical during , where the stocks being added often see a pre-emptive rally.
For Enphase, a leader in solar microinverters and battery storage solutions, the removal marks a setback after a period of significant growth that previously secured its spot in the elite index. The decision reflects shifts in market capitalization and sector weightings that are periodically adjusted by the index committee. Investors will now be watching to see if the stock can stabilize after the forced selling from index-tracking funds concludes.