American tech giant Apple is going to join the blue-chip Dow Jones Industrial Index in March, the S&P Dow Jones Indices announced on Friday.
The Cupertino-based company will replace telecom firms AT&T, the S&P Dow Jones Indices said.
The entry of maker of iPhone and iPad devices in the elite list of top 30 companies comes long time after the California tech giant emerged as the biggest firm in the United States by market capitalization. Apple’s has now a value of over USD 730 billion.
According to S&P Dow Jones, the change will take effect from March 19.
David Blitzer, managing director of the index committee at S&P Dow Jones Indices, said, “As the largest corporation in the world and a leader in technology, Apple is the clear choice for the Dow Jones Industrial Average, the most recognized stock market measure.”
According to S&P Dow Jones, Apple got the entry into the prestigious index in order to ensure proper representation of the information technology sector.
Blitzer said that AT&T was dropped by the index after concluding the Dow was “over-weighted” in the telecoms. However, Verizon will continue to represent the telecommunications sector in the Dow.
The entry of Apple comes only few days after the tech-rich Nasdaq Composite Index crossed 5,000-level for the first time in 15 years. Apple is a heavyweight at Nasdaq Composite Index.
Apple is likely to unveil its most anticipated smartwatch, named Apple Watch, on Monday during a tech event in San Francisco.
Apple shares increased 1.0 percent to USD 127.62 in early trade, while AT&T dropped 1.0 percent to USD 33.65.