No. of Recommendations: 1
" Tech is in rebound mode and for good reason. Micron (MU) put a stop to the recent selloff with an outlook that reaffirmed the AI narrative, leading Nasdaq 100 futures (US100:IND) to jump over 2% in early trade this morning. But it's not the only driver that's putting tech on the front cover, with some rival indices making waves of their own.
What happened? The Dow Jones Industrial Average (DJI), once known for its industrial makeup, is jumping further into the world of tech. Alphabet (GOOGL) is set to join the 130-year-old benchmark, which made its debut back in 1896. At the time, it contained the likes of General Electric and American Tobacco Company, which later became GE Vernova (GEV) and British American Tobacco (BTI), but the index now features just a remnant of its heavy industrial past as big changes sweep the Wall Street gauge.
The DJIA already included Microsoft (MSFT) and Intel (INTC) back in the 1990s, and later Cisco (CSCO) in the 2000s. By the 2010s, the index had Apple (AAPL) in its 30-company list, with Salesforce (CRM), Amazon (AMZN), and Nvidia (NVDA) brought into the fold in recent years. The addition of Google (GOOGL), however, cemented its pivot to tech, which is only likely to intensify in the coming years and decades.
Outlook: Nearly a third of the Dow Jones (DJI) is now tech-related. It is also price-weighted, unlike other common indices such as the S&P 500 (SP500) and Nasdaq Composite (COMP:IND), which are weighted by market capitalization. As a result, Alphabet's relatively high share price is expected to give it an initial weighting of roughly 5%, immediately making it one of the more influential components in the index. (8 comments)"
