The Dow Jones Industrial Average (DJIA) is a stock market index composed of 30 prominent companies listed on stock exchanges in the United States. It is one of the oldest and most commonly followed equity indexes. Here is a brief history of the Dow Jones Industrial Average1:
- Foundation: The Dow Jones Industrial Average was first calculated on May 26, 1896, and was initially known as the Dow Jones Railway Average.
- Expansion: On May 26, 1896, the index was expanded to include twelve stocks, and later to 30 stocks in 1928.
- Performance: The DJIA has seen significant fluctuations over its history, with periods of high growth and significant declines, such as the stock market crash of 1929 and the financial crisis of 2008.
- Influence: The DJIA has historically been considered an inadequate representation of the overall U.S. stock market compared to broader market indexes like the S&P 500. It is price-weighted, which means that the stocks with the highest prices have a greater influence on the index's value.
- Current Status: As of May 14, 2024, the DJIA had a price of 39,558.11, with a year-over-year increase of 4.96% in 2024.
The history of the Dow Jones Industrial Average reflects the broader trends and events in the U.S. economy and stock market, making it a significant indicator for investors and market analysts.
6/26/2024 11:57pm
