Macy’s will be removed from the benchmark S&P 500 index, the S&P Global Indices said on Tuesday evening.
Shares of the New York-based retailer plunged on the news.
Macy’s “will be removed from the S&P 500 effective prior to the open of trading on Monday, April 6,” S&P Global Indices said in a press release. The retailer will be added to the S&P 600 SmallCap Index.
Macy’s has seen its market value plunge by 94 percent to $1.52 billion from its July 2015 peak of $24.49 billion amid a shift in consumer preferences away from mall-based locations.
The removal of the retailer from the S&P 500 is the latest worry for the company, which earlier this week announced it was furloughing the majority of its 130,000 employees.
Macy's credit rating was cut to junk by the S&P on Feb. 18 amid concerns its “improvement trajectory” was weaker than expected. Macy’s on Feb. 4 announced it was closing more than 100 stores and implemented a cost-reduction strategy dubbed “Polaris,” which aims to stabilize profitability and position the department store chain for the years ahead.
Defense contractor Raytheon will also be removed from the index as a result of the completion of its merger with United Technologies. The newly formed company will be called Raytheon Technologies and remain in both the S&P 500 and 100 indexes.
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Joining the S&P 500 will be Otis Worldwide Corp. and Carrier Global Corp., two companies that are being spun off from United Technologies before its merger with Raytheon is completed.