**Nvidia Joins Dow Jones Industrial Average, Sherwin-Williams Sees Larger Impact**

In a significant move, Nvidia Corp (NVDA) is set to join the Dow Jones Industrial Average on November 8, replacing Intel Corp (INTC). This change, anticipated by market observers for some time, signals Nvidia's ascending prominence in the technology sector and reflects their substantial influence in areas such as artificial intelligence and chip manufacturing.

Previously highlighted by analysts including Freedom Capital Markets' Chief Strategist Jay Woods, Nvidia's 10-for-1 stock split earlier this year was seen as a strategic maneuver to align its shares with the Dow's price-weighted criteria, thus making it a prime candidate for inclusion. The Dow Jones, established in 1896, comprises 30 major U.S. companies and is known for adapting its roster to mirror the prevailing drivers of American economic growth.

Although Nvidia’s inclusion will be applauded, it ranks 21st out of the 30 companies due to its share price of $138.76, placing it between Chevron ($153.33) and 3M Co ($126.94). Correspondingly, Nvidia's weighting in the index will be around 1.98% to 2.38%, significantly lower than UnitedHealth Group Inc (UNH), which tops the index with an 8.8% weighting due to its $556.81 share price. Intel, by contrast, is currently at the bottom with a share price of $22.54 and a minimal 0.36% weighting.

Nvidia is already a giant in other indices; it's the second-largest component in the SPDR S&P 500 ETF Trust (SPY) with a 6.8% weighting and holds a 14.25% stake in the Technology Select Sector SPDR Fund (XLK). These figures underscore Nvidia's substantial market influence beyond the Dow.

On the same date, Sherwin-Williams Co (SHW) will also join the index, replacing Dow Inc (DOW). With its current share price of $372.97, Sherwin-Williams will have a notably larger impact. It’s expected to rank sixth in the index, sandwiched between Caterpillar ($377.72) and Amgen ($317.75), and will garner a weighting between 4.97% and 5.91%. This is a considerable increase compared to Dow Inc, which now ranks 28th with a price of $48.10 and a mere 0.76% weighting.

The changes mark significant shifts in the Dow Jones, highlighting the evolving landscape of market leaders. Intel, a Dow member since 1999, has struggled with stock performance, down 52.9% year-to-date in 2024 and 61.4% over the past five years. In stark contrast, Nvidia's stock has surged by 188.1% year-to-date in 2024 and 2,573.6% over the past five years, a testament to its robust growth trajectory.

Meanwhile, Sherwin-Williams has seen a consistent rise, up 22.3% year-to-date in 2024 and 92.5% over the past five years. Dow Inc’s performance has been less remarkable, with a 14.0% decline year-to-date and a 15.0% drop over five years. These disparities might explain the Dow Jones Industrial Average's underperformance compared to the S&P 500 index, emphasizing the need for these adjustments.