Adding the e-commerce titan will increase the Dow's exposure to retail and other market areas.

Amazon is also a massive player in cloud computing, entertainment and much more.

One analyst said Tuesday's news tallied with the Dow's mission to represent commerce across the U.S.

The move will likely matter most to retail investors, many of whom tend to follow that index.

Institutional investors generally keep a closer eye on the broader S&P 500.

Amazon will replace Walgreens Boots Alliance from next week.

Shares in the drugstore operator fell 3% in after-hours trade following the news.

Amazon shares gained over 1%.

Its addition to the Dow is the first adjustment to the index since 2020, when Salesforce, Amgen and Honeywell all joined.

Exxon Mobil, Pfizer and Raytheon were ousted at that time.

In another move announced Tuesday, Uber will join the Dow's transportation index, replacing JetBlue.