Veeva Systems, a cloud-based software company serving the life sciences industry, will join the S&P 500 index, replacing Coterra Energy, according to S&P Dow Jones Indices.

The change represents a shift in the composition of the benchmark index from the energy sector to the technology sector. Veeva Systems provides cloud computing solutions primarily for pharmaceutical and biotechnology companies, while Coterra Energy is an oil and natural gas exploration company.

The move comes as S&P Dow Jones Indices is reportedly considering new rules that would allow large initial public offerings to be added to the S&P 500 more quickly. The index committee has been evaluating ways to streamline the addition process for mega IPOs that meet market capitalization requirements.

Index changes typically occur when companies grow large enough to meet S&P 500 criteria or when existing members are removed due to mergers, acquisitions, or declining market value. The timing of when the change will take effect was not specified in the available information.

S&P 500 futures showed positive movement in recent trading sessions, supported by corporate earnings results and currency market developments including gains in the Japanese yen against the dollar.