On Monday Alphabet's shares opened higher after the Google parent company was added to the Dow Jones Industrial Average, taking Verizon's spot. In the first trading session under the new composition Alphabet's stock rose 3.7 percent to $350.24, making it one of the index's more influential components among the 30 members.
S&P Dow Jones Indices announced the change on June 23: Alphabet will replace Verizon in the benchmark. With this move, the number of "Magnificent Seven" firms represented in the Dow increases to five — Alphabet joins Nvidia, Amazon, Apple and Microsoft in the index.
The most recent Dow reshuffle occurred in November 2024, when Nvidia and Sherwin‑Williams replaced Intel and Dow Inc. Following the current change, funds that track the Dow will need to buy Alphabet shares to mirror the index; however, the additional demand is expected to be moderate.
About $115 billion in assets were tied to the Dow at the end of 2024, compared with roughly $20 trillion linked to the S&P 500. Alphabet was already a member of the S&P 500. Year to date, Alphabet's stock has risen about 11 percent, making it one of the stronger performers among large technology companies.
Meanwhile Verizon's share price fell, declining 7.8 percent to $42.03. The drop coincided with weakness across the telecommunications sector and followed Comcast's announcement that it will split NBCUniversal and Sky into two separate publicly traded companies.
This article is not investment advice or a recommendation.
