A Nasdaq-100 index membership means mutual funds, exchange-traded funds (ETFs), and other financial products based on this index will have to buy shares of Palantir. This increased demand should exert at least some upward pressure on the stock price.

Palantir, which is preparing to join the Nasdaq 100, is down Monday. Palantir stock shed more than 4% to 72.67 in midday trade after Nasdaq Inc. said the shares will be added to the Nasdaq 100 before the market opens Dec.

Key Takeaways Palantir shares are likely to be in the spotlight on Monday after the Nasdaq announced late Friday that the analytics software provider had been added to the Nasdaq 100 Index.The stock has continued to trend sharply higher after breaking out from a cup and handle pattern,