In a significant development, Amazon.com Inc. is set to be included in the Dow Jones Industrial Average, marking a milestone for the e-commerce giant. The announcement came from the S&P Dow Jones Indices on Tuesday, revealing that Amazon will replace Walgreens Boots Alliance in the 30-stock index.

This change was triggered by Walmart's decision to undergo a 3-to-1 stock split, which will result in a reduction of Walmart's stock weighting in the index. As the Dow is a price-weighted index, stocks with higher prices are given more significance. As a result, Amazon, based in Seattle, is scheduled to join the Dow on the same day as Walmart executes its stock split.

The S&P Dow Jones Indices noted that this alteration reflects the evolving landscape of the American economy, with a particular emphasis on enhancing consumer retail exposure and other business sectors within the DJIA. Following the adjustments, Amazon's weighting in the Dow will position it as the 17th heaviest-weighted stock out of the 30 stocks listed. Meanwhile, Walmart's weight will decrease from 17th to 26th place, with UnitedHealth Group retaining its status as the most heavily weighted stock in the index.

Furthermore, prior to the trading session on Monday, Uber Technologies, a ride-sharing service headquartered in San Francisco, will be integrated into the Dow Jones Transportation Average. This change is aimed at broadening the index's exposure to the ride-sharing industry, with Uber replacing JetBlue Airways due to its low share price, which caused its weight in the index to fall below half a percentage point.

Overall, these modifications in the Dow Jones Industrial Average and Dow Jones Transportation Average reflect the ongoing shifts in the market and economy, with prominent companies like Amazon and Uber playing pivotal roles in these transitions.