NEW YORK CITY, New York: Alphabet became one of the most influential companies in the Dow Jones Industrial Average on June 29, replacing Verizon Communications in a move that further strengthens the index's exposure to technology and artificial intelligence.

Shares of Google parent Alphabet rose 3.7 percent to US$350.24, making it one of the biggest contributors to gains in the 30-stock Dow index.

The company officially replaced Verizon after S&P Dow Jones Indices announced the change on June 23. Because the Dow is a price-weighted index, Alphabet's higher share price gives it greater influence than Verizon, which had been one of the index's least influential members.

Alphabet's addition also expands the Dow's exposure to digital advertising, cloud computing and artificial intelligence.

The move increases the number of Magnificent Seven technology companies in the Dow to five, joining Nvidia, Amazon, Apple and Microsoft.

The previous reshuffle in November 2024 brought Nvidia and Sherwin-Williams into the index, replacing Intel and Dow Inc.

The index change will require funds that track the Dow to purchase Alphabet shares to mirror the benchmark. However, the impact is expected to be limited because the Dow has far fewer assets linked to it than the S&P 500.

According to S&P Dow Jones Indices, about $115 billion in assets were indexed or benchmarked to the Dow as of December 31, 2024, compared with roughly $20 trillion tied to the S&P 500, where Alphabet is already a member.

Alphabet shares have gained about 11 percent so far this year, making the company one of the strongest performers among the Magnificent Seven technology stocks.

Meanwhile, Verizon shares fell 7.8 percent to $42.03 in a broader decline in telecom stocks after Comcast announced plans to split into two publicly traded companies through a spinoff of NBCUniversal and Sky.

The 130-year-old Dow Jones Industrial Average remains one of the world's most closely watched gauges of U.S. stock market performance.