Alphabet Inc (NASDAQ:GOOG) shares climbed about 5% on Monday after the company officially joined the Dow Jones Industrial Average, replacing Verizon Communications Inc (NYSE:VZ, XETRA:BAC) in a change that reflects the index's increasing exposure to large-cap technology and artificial intelligence companies.
The change took effect before the opening bell, with Alphabet becoming the latest technology heavyweight in the 30-stock benchmark alongside Apple, Amazon, Microsoft and Nvidia.
Verizon, meanwhile, fell about 6% after being removed from the Dow following a 22-year presence in the blue-chip index.
The reshuffle marks another shift in the composition of the Dow, which is periodically adjusted to better reflect changes in the US economy and stock market. Alphabet's addition increases the benchmark's representation of technology and AI-related companies, while Verizon's removal reduces its exposure to the telecommunications sector.
The Dow Jones Industrial Average is maintained by S&P Dow Jones Indices, which periodically updates its constituents to ensure the index continues to represent leading US companies across major industries.