The announcement of changes in the companies included in the calculation of the Dow Jones Industrial Average was made on November 8, 2024. NVIDIA has been added to the calculation, replacing Intel in the list of companies.
This alteration may not significantly impact stock prices, as the Dow Jones is not as commonly referenced as the S&P 500 for various funds. The Dow Jones reflects the overall economy of the United States through the average price of 30 company stocks, while other indexes primarily calculate based on company market capitalization.
The inclusion of NVIDIA and exclusion of Intel in this swap symbolizes a notable shift. Current technology companies listed in the Dow Jones Industrial Average include Amazon, Apple, Cisco, IBM, Microsoft, and Salesforce, with Intel being removed from the calculation since 1999.
Due to the price per stock being a crucial factor in the Dow Jones calculation, many technology companies that might seem fitting have not been included due to high stock prices. NVIDIA previously underwent a stock split of 10:1, placing its stock price at $100, making it a more suitable candidate for the Dow Jones.
Aside from the NVIDIA-Intel swap, Dow also removed Dow Chemical and added Sherwin-Williams to the index.
TLDR: The Dow Jones Industrial Average underwent changes with NVIDIA being added and Intel being removed from the list of companies, impacting the calculation of the index. Other changes include the removal of Dow Chemical and addition of Sherwin-Williams.
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