Alphabet will replace Verizon in the Dow Jones Industrial Average, S&P Global announced Tuesday.
The change further expands the presence of megacap technology stocks in the price-weighted benchmark, marking another shift in the composition of Wall Street's most watched index.
The swap removes a traditional telecom heavyweight from the 30-stock average and inserts the Google parent company, reflecting the broader market's pivot toward artificial intelligence and digital advertising leaders.
For index funds and traders tracking the Dow, the adjustment alters the weightings of the basket, increasing exposure to Alphabet's volatility and growth profile while reducing reliance on Verizon's dividend yield and slower growth trajectory.
The announcement comes as US equity markets have faced headwinds.
US equity markets closed lower on Monday, with the S&P 500 and Nasdaq Composite retreating as selling pressure in large-cap technology stocks overwhelmed broader market resilience.