Alphabet shares rose 3.7% to US$350.24 on June 29 after the Google parent joined the Dow Jones Industrial Average, replacing Verizon Communications in a change announced by S&P Dow Jones Indices on June 23.

S&P Dow Jones Indices said the switch would broaden and strengthen the Dow’s exposure to AI, cloud computing, digital advertising, and healthcare technology, while making Alphabet a stronger representative of the communication services sector.

Because the Dow is price-weighted, Alphabet’s higher share price gives it more influence than Verizon, which had represented about 0.5% of the index.

The change lifts the number of Magnificent Seven companies in the benchmark to five.

S&P Dow Jones Indices said about US$115 billion tracked or was benchmarked to the Dow at the end of 2024, versus roughly US$20 trillion for the S&P 500, suggesting limited buying pressure from funds that track the Dow.

Verizon shares fell 7.8% to US$42.03 in a broader retreat in telecom stocks after Comcast said it would split into two publicly traded companies through a spin-off of NBCUniversal and Sky.

🔗 Source: Reuters