(Reuters) -Robinhood Markets will replace casino operator Caesars Entertainment in the benchmark S&P 500, marking a pivotal moment for the financial technology sector as the retail trading platform joins the ranks of the most influential U.S. companies.

The inclusion, announced by S&P Dow Jones Indices on Friday, is expected to boost demand for Robinhood’s stock as index-tracking funds adjust their holdings. It also underscores Robinhood’s evolution from a pandemic-era trading upstart to a company with sustained influence in the U.S. financial markets.

Credited with revolutionizing retail trading by eliminating commissions and making stock investing accessible through a user-friendly app, the platform has attracted a new generation of investors and reshaped how everyday Americans participate in financial markets.

Others set to join the S&P 500 are marketing platform AppLovin and mechanical and electrical construction services firm Emcor. They will replace bond trading platform MarketAxess and solar inverter maker Enphase Energy, respectively.

Inclusion in the S&P 500 typically boosts a company’s stock price as passive funds and exchange-traded funds tracking the benchmark are forced to buy in, creating a demand surge.

Analysts also view it as a sign of financial stability and broader market credibility, prompting increased interest from institutional investors.

The changes will be effective before market open on September 22.

Shares of Robinhood rose 7.3% in extended trading. While AppLovin climbed 7%, Emcor gained 2.2%.

Robinhood shares have more than doubled this year, giving the company a market capitalization of roughly $91.5 billion, according to data compiled by LSEG.

In May, crypto exchange Coinbase became the first digital asset firm to join the benchmark S&P 500, adding fresh legitimacy to the U.S. financial technology sector.

(Reporting by Arasu Kannagi Basil and Manya Saini in Bengaluru; Editing by Pooja Desai and Shilpi Majumdar)