Alphabet (GOOGL) will replace Verizon Communications (VZ) in the Dow Jones Industrial Average before trading opens on June 29, S&P Dow Jones Indices said on Tuesday, prompting a modest after-hours rise in the Google parent and a small decline in Verizon.
VZ – 5 Days Chart
The move pushes the 30-stock benchmark further towards mega-cap technology and digital services after a day when US technology shares came under renewed pressure.
Market Snapshot
Alphabet shares rose about 0.5% in extended trading after closing down roughly 1%. Verizon slipped less than 1% after hours, after gaining about 3% in the regular session.
The broader market backdrop was weaker. The Nasdaq Composite fell 2.2% on Tuesday, while the S&P 500 lost 1.4%. The Dow Jones Industrial Average, which has a smaller technology weighting, declined 0.1%.
Index Change
S&P Dow Jones Indices said Verizon’s low share price had left it with only about 0.5% of the Dow’s weight. The Dow is price weighted, meaning higher-priced shares have greater influence over index moves.
Alphabet’s businesses span search advertising, cloud computing, artificial intelligence, hardware, autonomous mobility and media. Its inclusion gives the Dow a larger exposure to parts of the economy that now dominate US equity market value.
Wider Context
Alphabet will become the fifth so-called Magnificent Seven stock in the Dow, joining Microsoft (MSFT), Apple (AAPL), Amazon (AMZN) and Nvidia (NVDA). Nvidia and Sherwin-Williams (SHW) were added in November 2024, replacing Intel (INTC) and Dow Inc (DOW).
The reshuffle also leaves the Dow without a pure telecoms representative, underscoring how the index has moved away from legacy industrial and communications groups towards companies tied to software, data centres, AI infrastructure and digital advertising.
In a related change, Honeywell International will remain in the Dow after spinning off Honeywell Aerospace, with the parent to be renamed Honeywell Technologies. Honeywell Aerospace is set to join the S&P 500, replacing Conagra Brands (CAG).
Outlook
Traders will watch index-tracking flows before the June 29 effective date, Alphabet’s weighting in the price-based Dow, and whether the wider technology sell-off steadies.
Investors will also focus on Alphabet’s AI spending, cloud margins and regulatory risks, as well as Verizon’s performance outside the blue-chip benchmark.
