Why Lattice Semiconductor Stock Soared on Friday

Shares of Lattice Semiconductor (NASDAQ: LSCC) soared today, up by 13% as of 1:40 p.m. EDT, after S&P Dow Jones Indices announced that the company would be joining the S&P MidCap 400 index. While the news has no bearing on Lattice's business fundamentals, it does create buying activity from index funds that track the underlying index, which are now obligated to purchase the stock. The dominant index provider is shuffling constituents for three different widely followed indexes, the S&P 500, the S&P MidCap 400, and the S&P SmallCap 600, all of which will become effective on Tuesday, April 20.