Alphabet Inc. has officially joined the Dow Jones Industrial Average, replacing Verizon Communications in a composition change that marks another step in the index's pivot toward technology.
The swap, which took effect on Monday, sees the Google parent company added to the 30-stock benchmark while the telecom giant is removed.
Alphabet shares rose in the session following the announcement, reflecting investor sentiment around the inclusion in the prestigious index.
The move highlights the growing weight of technology in the Dow, as index managers continue to adjust the composition to reflect the evolving US economy.
Verizon, a long-standing component, exits the index as part of this ongoing rebalancing.
The Dow Jones Industrial Average has faced criticism for its price-weighted methodology, which can distort the influence of high-priced stocks.