The addition of Alphabet aims to provide the DJIA with deeper exposure to high-growth sectors, including artificial intelligence, cloud infrastructure, and autonomous mobility. S&P officials noted that Alphabet’s substantial market capitalization and current share price offer a more accurate reflection of the modern communication services landscape than Verizon, which currently accounts for only 0.5% of the price-weighted index.

Simultaneous to the shake-up, Honeywell International is restructuring. Following the spin-off of its aerospace division on June 29, the remaining entity will continue its tenure on the index under the name Honeywell Technologies, while the aerospace unit will be excluded from the DJIA components.