Benjamin Fanjoy | Bloomberg | Getty Images
S&P Global said the Google parent’s A shares would take the spot in the 30-stock index ahead of the start of Monday’s trading.
Honeywell would remain in the Dow following the completion of its spin off of Honeywell Aerospace, S&P Global said. But the spun-off company would not be in the index, the company said.
S&P Global said Alphabet’s inclusion would bolster the Dow’s exposure to themes like artificial intelligence, cloud infrastructure and advertising.
Alphabet has been spending heavily on AI, including raising $141 billion in debt and equity since October. The company has been trying to prove that its vertically integrated AI stack can generate returns.
But investors have been weary recently, with Alphabet closing its worst day on the stock market Monday in more than a year. The stock underperformed both the Nasdaq and the other tech megacaps in the session.
Before the Alphabet selloff, the company came off highs from the Spring time, when Google had its best month on Wall Street since 2004. That came after Alphabet reported better-than-expected results, driven by soaring cloud revenue.
Verizon had represented just around one-half of a percentage point in the index because of its low share price, S&P Global said.
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