Alphabet joins Dow Jones Industrial Average, shares rise

Shares of Alphabet Inc., the parent company of Google, rose sharply on Monday as the technology giant officially joined the Dow Jones Industrial Average, replacing Verizon Communications. The stock closed at $350.24, a gain of 3.7 percent, providing a significant boost to the 30-stock index.

The change, first announced by S&P Dow Jones Indices on June 23, took effect with the opening bell on June 29. Alphabet’s inclusion marks a symbolic shift for the 130-year-old benchmark, swapping a traditional telecommunications utility for a company at the forefront of artificial intelligence, cloud computing, and digital advertising. Because the Dow is a price-weighted index, Alphabet’s high share price immediately makes it one of the most influential components, commanding a weighting of roughly 4 percent.

The move increases the number of so-called "Magnificent Seven" technology stocks in the Dow to five, with Alphabet now alongside Nvidia, Amazon, Apple, and Microsoft. The previous index reshuffle occurred in November 2024 when Nvidia and Sherwin-Williams replaced Intel and Dow Inc.

While index funds that track the Dow must purchase Alphabet shares to mirror the new composition, analysts...