NVIDIA's current stock price is $140, while Visa, a component stock of the Dow Jones Industrial Average (DIA), is priced at $290, which is almost exactly twice as much as NVDA. Visa's weight in the DIA is 4.5%, so the corresponding weight for NVDA would be less than 2.25%. Let's use 2.25% for calculation. The size of DIA is only $35.2 billion, which is roughly equivalent to $0.88 billion in passive bid. If we include ETFs related to the Dow Jones, the final passive bid may also be less than $1.2 billion.
What impact could a $1.2 billion bid have on NVDA? I think it's basically negligible. The trading volume of NVDA after hours alone is $2.37 billion, so it's likely that it would be bought up in one go. Hence, this inclusion in the Dow Jones is just a tactic that Wall Street is using to support the market before the election. After all, NVDA's daily trading volume is in the tens of billions, so $1.2 billion is really just a drop in the ocean.
This inclusion in the Dow Jones could actually have a negative impact on individual stocks. When NVDA ramps up mindlessly, market liquidity may be sucked dry by NVDA alone. We may witness a scenario where 'individual stocks plummet while the index remains almost flat, with NVDA skyrocketing.' We've seen similar situations many times before, and it's probably not unfamiliar to everyone.
While NVDA may temporarily support the index, the ultimate determinant of market trends will still be the election!