Oil giant Exxon Mobil, which has been among the top 30 companies in the Dow Jones Industrial Average since 1928, has been removed from the blue-chip index since Tuesday, being replaced by software maker Salesforce.com, according to CNBC.
Along with Exxon, which is being replaced by Salesforce, Pfizer and Raytheon Technologies have been eliminated in favor of Amgen and Honeywell International.
The removal of Exxon is a “sign of the times,” according to Raymond James, as the company – and the energy sector in general – falter, this move becoming more apparent as technology grows.
Energy now accounts for only 2.5% of the S&P 500, compared to 6.84% five years ago and 10.89% ten years ago. Technology has jumped from 18.48% of the 2010 index to 28.17% today. Analysts say five technology stocks – Apple, Microsoft, Amazon, Alphabet and Facebook – are individually larger than the entire US energy sector, according to financialintelligence.ro.