Robinhood falls after S&P 500 inclusion snub

Shares of online brokerage Robinhood Markets HOOD.O drop 5.7% to $70.6 in premarket trading after rallying more than 10% last week

S&P Dow Jones Indices announced on June 6 that they will not be making any changes to the S&P 500 .SPX index as part of their latest rebalancing

Bank of America had said in a note dated June 3 that HOOD was the primary candidate to join the benchmark index

"For Robinhood and Ares Management, which aren't a part of the S&P 400, we would expect significant buying activity from passive funds," the analysts said

As of last close, HOOD shares have more than doubled YTD, well above its 2021 IPO price of $38

Another stock that BofA viewed as a potential addition to the S&P 500 was alternative investment manager Ares Management ARES.N; its shares are down 3.3% in low volumes