Why Vir Biotechnology Stock Is Skyrocketing Today

Shares of Vir Biotechnology (NASDAQ: VIR) were skyrocketing 19.4% higher as of 12:33 p.m. ET on Wednesday. The big jump came after S&P Global announced that Vir will replace Matador Resources on the S&P SmallCap 600 index effective before the market open on April 4. Matador is moving up to the S&P MidCap 400 index.

The addition of Vir to the S&P SmallCap 600 index is good news for one simple reason: Any mutual funds or exchange-traded funds (ETFs) that track the index will have to buy the biotech stock. This buying activity could create upward pressure on Vir's share price.

Inclusion on the S&P SmallCap600 warrants increased enthusiasm among Vir shareholders. However, there are more important things to watch with the company.

Source Fool.com