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Alphabet debuts in Dow Jones Industrial Average as index tilts toward tech
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The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational. June 29 (Reuters) - Alphabet shares climbed on Monday as the Google parent made its debut in the blue-chip Dow Jones Industrial Average, replacing Verizon Communications, and immediately ranking among its most influential members. • Its shares rose 3.7% to $350.24, offering one of the biggest boosts to the 30-member Dow. • The company replaced Verizon on the index, S&P Dow Jones Indices said in an announcement on June 23. • As a higher-priced stock, Alphabet carries more weight in the price-weighted index than Verizon did, which was one of its least influential members, and broadens the Dow's exposure to digital advertising, cloud computing and AI. • The addition lifts to five the number of 'Magnificent Seven' members in the Dow, alongside Nvidia, Amazon, Apple and Microsoft. • The previous reshuffle in November 2024 brought in Nvidia and Sherwin-Williams in place of Intel and Dow Inc. • Index funds tracking the Dow must buy Alphabet to mirror the change, but the demand is likely to be modest: the Dow had about $115 billion in assets indexed and benchmarked to it as of December 31, 2024, against roughly $20 trillion for the S&P 500, where Alphabet is already a member, according to S&P Dow Jones Indices. • Alphabet shares are up roughly 11% this year, as of last close, among the best performers in the Magnificent Seven group of tech mega-caps. • The 130-year-old Dow remains one of the most widely cited gauges of U.S. market sentiment. • Verizon shares fell 7.8% to $42.03 in a broad retreat in telecom stocks after Comcast said it would split into two publicly traded companies through a spinoff of NBCUniversal and Sky. (Reporting by Medha Singh in Bengaluru; Editing by Joyjeet Das)
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