The adjustments to the Dow Jones Industrial index will come into effect on February 26 before the commencement of trading. This marks the first change in the index’s composition since August 2020.
S&P Dow Jones Indices pointed out that Amazon’s addition to the Dow Jones Industrial reflects a shift in the nature of the U.S. economy and will elevate the weight of the retail sector in the benchmark.
Furthermore, as of February 26, the constituents of the Dow Jones Transportation index will be altered to include Uber shares, replacing Jetblue Airways securities, as per the report.
MinCifry can restrict foreign IT companies’ access to benefits
As of 11:16 Moscow time, the price of Amazon shares stood at $169.32, marking a 1.34% increase from the previous day’s closing price. Meanwhile, Uber’s quotes at that time totaled $77.09, reflecting a 0.64% rise from the previous day’s main trading session. Their shares have risen by 11.44% and 25.21% since the beginning of the year, respectively.
Bank of America analysts previously suggested that the continued surge in the stock prices of the “magnificent seven” American big tech companies, including Apple, Tesla, Meta (recognized as extremist and banned in Russia), Alphabet, Amazon, Microsoft, and Nvidia, may halt the increase in the real yield of 10-year treasury bonds to 2.5–3%. BofA experts identified similarities and differences between the bubbles in global markets over the past 100 years and the current situation, concluding that reaching a certain level of inflation-adjusted government bond yields was the most common cause for the collapse of stock market bubbles.