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{{Short description|American stock market index composed of 30 industry leaders}} {{redirect|Dow Jones index|other indices|Dow Jones}} {{Use American English|date=November 2020}} {{Use mdy dates|date=February 2024}} {{Infobox financial index | name = Dow Jones Industrial Average | logo = | image = [[File:DJIA historical graph (log).svg|300px|alt=A historical graph. The Dow rises periodically through the decades with corrections along the way, from its record low of under 35 in the late 1890s to a high of around 36,000 in 2022.]] | caption = Historical logarithmic graph of the DJIA from 1896 to 2018 | foundation = {{start date and age|1885|2|16}} (as DJA)<ref>{{cite web|title=Dow Record Book Adds Another First|url=http://articles.philly.com/1995-02-24/news/25702996_1_blue-chip-stocks-industrial-shares-index|work=Philly.com|date=February 24, 1995|archive-url=https://web.archive.org/web/20131004232102/http://articles.philly.com/1995-02-24/news/25702996_1_blue-chip-stocks-industrial-shares-index|archive-date=October 4, 2013}}</ref><br />{{start date|1896|5|26}} (as DJIA)<ref name="MoneyWeek">{{cite web|first=Ben|last=Judge|title=26 May 1896: Charles Dow launches the Dow Jones Industrial Average|url=https://moneyweek.com/392888/26-may-1896-charles-dow-launches-the-dow-jones-industrial-average/|work=[[MoneyWeek]]|date=May 26, 2015|access-date=October 6, 2019|archive-date=October 6, 2019|archive-url=https://web.archive.org/web/20191006090125/https://moneyweek.com/392888/26-may-1896-charles-dow-launches-the-dow-jones-industrial-average/|url-status=live}}</ref> | operator = [[S&P Dow Jones Indices]] | exchanges = {{Unbulleted list|[[New York Stock Exchange]]|[[Nasdaq]]}} | symbol = {{ubl|^DJI|$INDU|.DJI|DJIA}} | constituents = 30 | cap_level = [[Large cap]] | mcap = {{US$|19.5 trillion|link=yes}}<br />({{as of|2024|12|31|lc=y|df=US}})<ref>{{cite web | url=https://www.spglobal.com/spdji/en/indices/equity/dow-jones-industrial-average/ | title=Dow Jones Industrial Averageยฎ Fact Sheet | publisher=[[S&P Global]] |format=PDF}}</ref> | weighting = [[Price-weighted index]] | homepage = {{URL|https://www.spglobal.com/spdji/en/}} }} The '''Dow Jones Industrial Average''' ('''DJIA'''), '''Dow Jones''', or simply the '''Dow''' ({{IPAc-en|'|d|aส}}), is a [[stock market index]] of 30 prominent companies listed on [[stock exchange]]s in the United States. The DJIA is one of the oldest and most commonly followed equity indices. It is [[Price-weighted index|price-weighted]], unlike other common indexes such as the [[Nasdaq Composite]] or [[S&P 500]], which use [[Capitalization-weighted index|market capitalization]].<ref>{{cite news | last=Deporre | first=James | title=Ignore the Misleading Dow Jones Industrial Average | url=https://realmoney.thestreet.com/articles/09/07/2018/ignore-misleading-dow-jones-industrial-average | work=[[TheStreet.com]] | date=September 7, 2018 | access-date=August 12, 2019 | archive-date=August 12, 2019 | archive-url=https://web.archive.org/web/20190812200744/https://realmoney.thestreet.com/articles/09/07/2018/ignore-misleading-dow-jones-industrial-average | url-status=live }}</ref><ref>{{cite news | last=Dzombak | first=Dan | title=Why the Dow Jones Industrial Average Is Useless | url=https://www.fool.com/investing/general/2014/04/18/why-the-dow-jones-industrial-average-is-useless.aspx | work=[[The Motley Fool]] | date=April 18, 2014 | access-date=August 12, 2019 | archive-date=August 12, 2019 | archive-url=https://web.archive.org/web/20190812202653/https://www.fool.com/investing/general/2014/04/18/why-the-dow-jones-industrial-average-is-useless.aspx | url-status=live }}</ref> The DJIA also contains fewer stocks, which could exhibit higher risk; however, it could be less volatile when the market is rapidly rising or falling due to its components being well-established large-cap companies.<ref name=spglobal /> The value of the index can also be calculated as the sum of the stock prices of the companies included in the index, divided by a factor, which is approximately 0.163 {{as of|2024|11|lc=y}}. The factor is changed whenever a constituent company undergoes a [[stock split]] so that the value of the index is unaffected by the stock split. First calculated on May 26, 1896,<ref name="MoneyWeek" /> the index is the second-oldest among U.S. market indices, after the [[Dow Jones Transportation Average]]. It was created by [[Charles Dow]], co-founder of both ''[[The Wall Street Journal]]'' and [[Dow Jones & Company]], and named after him and his business associate, statistician [[Edward Jones (statistician)|Edward Jones]]. The index is maintained by [[S&P Dow Jones Indices]], an entity majority-owned by [[S&P Global]]. Its components are selected by a committee. The ten components with the largest [[dividend yield]]s are commonly referred to as the [[Dogs of the Dow]]. As with all stock prices, the prices of the constituent stocks and consequently the value of the index itself are affected by the performance of the respective companies as well as macroeconomic factors. [[File:Dow Jones Industrial Average.webp|thumb|upright=1.4|Dow Jones Industrial Average 1970โ2022]] ==Components== {{As of|2025|January|30|df=US|post=,}} the Dow Jones Industrial Average consists of the following companies, with a weighting as shown:<ref>{{cite web |title=Dow Jones Companies Sorted by Weight |url=https://www.slickcharts.com/dowjones |website=Slickcharts |access-date=February 26, 2024}}</ref> {{disputed|date=October 2024|discuss=Talk:Dow Jones Industrial Average#industry sectors|what=table's "industry" column}} {| class="wikitable sortable" id="constituents" |+ DJIA component companies, showing trading exchange, [[ticker symbol]]s and industry |- !scope="col"| Company !scope="col"| Exchange !scope="col"| Symbol !scope="col"| Industry !scope="col"| Date added !scope="col" class=unsortable| Notes !scope="col"| Index weighting |- !scope="row"| [[3M]] | [[New York Stock Exchange|NYSE]] | {{NYSE link|MMM}} | [[Conglomerate (company)|Conglomerate]] | 1976-08-09 | As Minnesota Mining and Manufacturing | 2.11% |- !scope="row"| [[American Express]] | [[New York Stock Exchange|NYSE]] | {{NYSE link|AXP}} | [[Financial services]] | 1982-08-30 | | 4.37% |- !scope="row"| [[Amgen]] | [[NASDAQ]] | {{NASDAQ link|AMGN}} | [[Biopharmaceutical]] | 2020-08-31 | | 3.89% |- !scope="row"| [[Amazon (company)|Amazon]] | [[NASDAQ]] | {{NASDAQ link|AMZN}} | [[Retailing]] | 2024-02-26 | | 3.21% |- !scope="row"| [[Apple Inc.|Apple]] | [[NASDAQ]] | {{NASDAQ link|AAPL}} | [[Information technology]] | 2015-03-19 | | 3.25% |- !scope="row"| [[Boeing]] | [[New York Stock Exchange|NYSE]] | {{NYSE link|BA}} | [[Aerospace manufacturer|Aerospace]] and [[Arms industry|defense]] | 1987-03-12 | | 2.46% |- !scope="row"| [[Caterpillar Inc.|Caterpillar]] | [[New York Stock Exchange|NYSE]] | {{NYSE link|CAT}} | [[Heavy equipment (construction)|Construction]] and [[mining]] | 1991-05-06 | | 5.13% |- !scope="row"| [[Chevron Corporation|Chevron]] | [[New York Stock Exchange|NYSE]] | {{NYSE link|CVX}} | [[Petroleum industry]] | 2008-02-19 | Also 1930-07-18 to 1999-11-01 | 2.14% |- !scope="row"| [[Cisco]] | [[NASDAQ]] | {{NASDAQ link|CSCO}} | [[Information technology]] | 2009-06-08 | | 0.83% |- !scope="row"| [[The Coca-Cola Company|Coca-Cola]] | [[New York Stock Exchange|NYSE]] | {{NYSE link|KO}} | [[Drink industry]] | 1987-03-12 | Also 1932-05-26 to 1935-11-20 | 0.88% |- !scope="row"| [[The Walt Disney Company|Disney]] | [[New York Stock Exchange|NYSE]] | {{NYSE link|DIS}} | [[Broadcasting]] and [[entertainment]] | 1991-05-06 | | 1.55% |- !scope="row"| [[Goldman Sachs]] | [[New York Stock Exchange|NYSE]] | {{NYSE link|GS}} | [[Financial services]] | 2013-09-23 | | 8.84% |- !scope="row"| [[Home Depot]] | [[New York Stock Exchange|NYSE]] | {{NYSE link|HD}} | [[Home improvement|Home Improvement]] | 1999-11-01 | | 5.67% |- !scope="row"| [[Honeywell]] | | [[NASDAQ]] | {{NASDAQ link|HON}} | [[Conglomerate (company)|Conglomerate]] | 2020-08-31 | Also 1925-12-07 to 2008-02-19 under various names, including Allied Chemical and Dye, Allied Chemical, |AlliedSignal and Honeywell | 3.07% |- !scope="row"| [[IBM]] | [[New York Stock Exchange|NYSE]] | {{NYSE link|IBM}} | [[Information technology]] | 1979-06-29 | Also 1932-05-26 to 1939-03-04 | 3.54% |- !scope="row"| [[Johnson & Johnson]] | [[New York Stock Exchange|NYSE]] | {{NYSE link|JNJ}} | [[Pharmaceutical industry]] | 1997-03-17 | | 2.09% |- !scope="row"| [[JPMorgan Chase]] | [[New York Stock Exchange|NYSE]] | {{NYSE link|JPM}} | [[Financial services]] | 1991-05-06 | | 3.67% |- !scope="row"| [[McDonald's]] | [[New York Stock Exchange|NYSE]] | {{NYSE link|MCD}} | [[Food industry]] | 1985-10-30 | | 3.97% |- !scope="row"| [[Merck & Co.|Merck]] | [[New York Stock Exchange|NYSE]] | {{NYSE link|MRK}} | [[Pharmaceutical industry]] | 1979-06-29 | | 1.35% |- !scope="row"| [[Microsoft]] | [[NASDAQ]] | {{NASDAQ link|MSFT}} | [[Information technology]] | 1999-11-01 | | 5.68% |- !scope="row"| [[Nike, Inc.|Nike]] | [[New York Stock Exchange|NYSE]] | {{NYSE link|NKE}} | [[Clothing industry]] | 2013-09-23 | | 1.07% |- !scope="row"| [[Nvidia]] | [[NASDAQ]] | {{NASDAQ link|NVDA}} | [[Information technology]] | 2024-11-08 | | 1.71% |- !scope="row"| [[Procter & Gamble]] | [[New York Stock Exchange|NYSE]] | {{NYSE link|PG}} | [[Fast-moving consumer goods]] | 1932-05-26 | | 2.29% |- !scope="row"| [[Salesforce]] | [[New York Stock Exchange|NYSE]] | {{NYSE link|CRM}} | [[Information technology]] | 2020-08-31 | | 4.70% |- !scope="row"| [[Sherwin-Williams]] | [[New York Stock Exchange|NYSE]] | {{NYSE link|SHW}} | [[Specialty chemicals]] | 2024-11-08 | | 5.00% |- !scope="row"| [[The Travelers Companies|Travelers]] | [[New York Stock Exchange|NYSE]] | {{NYSE link|TRV}} | [[Insurance]] | 2009-06-08 | | 3.41% |- !scope="row"| [[UnitedHealth Group]] | [[New York Stock Exchange|NYSE]] | {{NYSE link|UNH}} | [[Managed health care]] | 2012-09-24 | | 7.47% |- !scope="row"| [[Verizon]] | [[New York Stock Exchange|NYSE]] | {{NYSE link|VZ}} | [[Telecommunications industry]] | 2004-04-08 | | 0.54% |- !scope="row"| [[Visa Inc.|Visa]] | [[New York Stock Exchange|NYSE]] | {{NYSE link|V}} | [[Financial services]] | 2013-09-23 | | 4.70% |- !scope="row"| [[Walmart]] | [[New York Stock Exchange|NYSE]] | {{NYSE link|WMT}} | [[Retailing]] | 1997-03-17 | | 1.35% |} == Former components == {{main|Historical components of the Dow Jones Industrial Average}} As of November 8, 2024, the components of the DJIA have changed 59 times since its beginning on May 26, 1896. [[General Electric]] had the longest presence on the index, beginning in the original index in 1896 and ending in 2018, but was dropped and re-added twice between 1898 and 1907. Changes to the index since 1991 are as follows: * On May 6, 1991, [[Caterpillar Inc.]], [[J.P. Morgan & Co.]], and [[The Walt Disney Company]] replaced [[American Can]], [[Navistar]], and [[U.S. Steel]].<ref>{{cite news | url=https://www.latimes.com/archives/la-xpm-1991-05-03-fi-1049-story.html | title=Dow Will Add Disney, Morgan and Caterpillar | work=[[Los Angeles Times]] | date=May 3, 1991 | url-access=subscription | access-date=September 15, 2019 | archive-date=November 26, 2020 | archive-url=https://web.archive.org/web/20201126184034/https://www.latimes.com/archives/la-xpm-1991-05-03-fi-1049-story.html | url-status=live }}</ref> * On March 17, 1997, [[Citigroup#Travelers Group (1986โ2007)|Travelers Inc.]], [[Hewlett-Packard]], [[Johnson & Johnson]], and [[Walmart]] replaced [[Westinghouse Electric]], [[Texaco]], [[Bethlehem Steel]], and [[F. W. Woolworth Company]].<ref>{{cite news | url=https://money.cnn.com/1997/03/12/markets/dow/ | title=Dow replaces 4 components | work=[[CNN]] | date=March 12, 1997 | access-date=September 15, 2019 | archive-date=November 26, 2020 | archive-url=https://web.archive.org/web/20201126184036/https://money.cnn.com/1997/03/12/markets/dow/ | url-status=live }}</ref> * On November 1, 1999, [[Microsoft]], [[Intel]], [[SBC Communications]], and [[Home Depot]] replaced [[Goodyear Tire]], [[Sears Roebuck]], [[Union Carbide]], and [[Chevron Corporation]].<ref name="Dow goes more digital">{{cite news | url=https://money.cnn.com/1999/10/26/markets/dowindustrials/ | title=Dow goes more digital | work=[[CNN]] | date=October 26, 1999 | access-date=September 15, 2019 | archive-date=April 29, 2019 | archive-url=https://web.archive.org/web/20190429100748/https://money.cnn.com/1999/10/26/markets/dowindustrials/ | url-status=live }}</ref> Intel and Microsoft became the first and second companies traded on the Nasdaq to be part of the Dow.<ref name="Dow goes more digital"/> * On April 8, 2004, [[American International Group]], [[Pfizer]], and [[Verizon Communications]] replaced [[AT&T Corporation]], [[Kodak]], and [[International Paper]].<ref>{{cite news | url=https://money.cnn.com/2004/04/01/markets/dow/ | title=AT&T, Kodak, IP out of Dow | first=Chris | last=Isidore | work=[[CNN]] | date=April 1, 2004 | access-date=September 15, 2019 | archive-date=June 13, 2018 | archive-url=https://web.archive.org/web/20180613005508/http://money.cnn.com/2004/04/01/markets/dow/ | url-status=live }}</ref> * On February 19, 2008, [[Chevron Corporation]] and [[Bank of America]] replaced [[Altria Group]] and [[Honeywell]]. Chevron was previously a Dow component from July 18, 1930, to November 1, 1999. During Chevron's absence, its split-adjusted price per share went from $44 to $85, while the price of petroleum rose from $24 to $100 per barrel.<ref>{{cite news | url=https://money.cnn.com/2008/02/11/markets/dow_jones/index.htm | title=Dow industrials add Bank of America, Chevron | first=David | last=Goldman | work=[[CNN]] | date=February 11, 2008 | access-date=September 15, 2019 | archive-date=May 14, 2012 | archive-url=https://web.archive.org/web/20120514040200/http://money.cnn.com/2008/02/11/markets/dow_jones/index.htm | url-status=live }}</ref> * On September 22, 2008, [[Kraft Foods Inc.]] replaced [[American International Group]] (AIG) in the index.<ref>{{cite news | url=https://www.reuters.com/article/us-markets-stocks-aig/aig-bumped-from-dow-replaced-by-kraft-idUSN1829671220080918 | title=AIG bumped from Dow, replaced by Kraft | first=Kristina | last=Cooke | work=[[Reuters]] | date=September 18, 2008 | access-date=September 15, 2019 | archive-date=November 26, 2020 | archive-url=https://web.archive.org/web/20201126184035/https://www.reuters.com/article/us-markets-stocks-aig/aig-bumped-from-dow-replaced-by-kraft-idUSN1829671220080918 | url-status=live }}</ref><ref>{{cite news |last=Browning |first=E. S. |date=September 19, 2008 |title=Kraft Is Added to DJIA, And AIG Is Subtracted |url=https://www.wsj.com/articles/SB122174423720252297 |url-access=subscription |url-status=live |archive-url=https://web.archive.org/web/20160131082808/http://www.wsj.com/articles/SB122174423720252297 |archive-date=January 31, 2016 |access-date=September 15, 2019 |work=[[The Wall Street Journal]]}}</ref> * On June 8, 2009, [[The Travelers Companies]] and [[Cisco Systems]] replaced [[Motors Liquidation Company]] (formerly [[General Motors]]) and [[Citigroup]]. Cisco became the third company traded on the NASDAQ to be part of the Dow.<ref>{{cite news |last=Browning |first=E. S. |date=June 1, 2009 |title=Travelers, Cisco Replace Citi, GM in Dow |url=https://www.wsj.com/articles/SB124386244318072033 |url-access=subscription |url-status=live |archive-url=https://web.archive.org/web/20191013103515/https://www.wsj.com/articles/SB124386244318072033 |archive-date=October 13, 2019 |access-date=August 12, 2017 |work=[[The Wall Street Journal]]}}</ref> * On September 24, 2012, [[UnitedHealth Group]] replaced [[Kraft Foods Inc.]] following Kraft's split into [[Mondelez International]] and [[Kraft Foods]].<ref>{{Cite news|last=Kiernan|first=Kaitlyn|date=September 14, 2012|title=UnitedHealth to Replace Kraft in Dow Industrials|language=en-US|work=[[The Wall Street Journal]]|url=https://online.wsj.com/article/SB10000872396390444023704577651302317438124.html|access-date=October 28, 2021|issn=0099-9660}}</ref><ref>{{Cite web|last=Nazareth|first=Rita|title=Kraft Foods is being replaced on Dow Jones|url=https://www.inquirer.com/philly/business/20120915_Kraft_Foods_is_being_replaced_on_Dow_Jones.html|url-status=live|access-date=October 28, 2021|website=The Philadelphia Inquirer|date=September 15, 2012 |language=en|archive-url=https://web.archive.org/web/20210227133156/https://www.inquirer.com/philly/business/20120915_Kraft_Foods_is_being_replaced_on_Dow_Jones.html |archive-date=February 27, 2021 }}</ref> * On September 23, 2013, [[Goldman Sachs]], [[Nike, Inc.]], and [[Visa Inc.]] replaced [[Alcoa]], [[Bank of America]], and [[Hewlett-Packard]]. Visa replaced Hewlett-Packard because of the split into [[HP Inc.]] and [[Hewlett Packard Enterprise]].<ref>{{cite press release | url=https://www.prnewswire.com/news-releases/goldman-sachs-visa--nike-set-to-join-the-dow-jones-industrial-average-223120141.html | title=Goldman Sachs, Visa & Nike Set to Join the Dow Jones Industrial Average | publisher=[[PR Newswire]] | date=September 10, 2013 | access-date=September 15, 2019 | archive-date=November 26, 2020 | archive-url=https://web.archive.org/web/20201126184122/https://www.prnewswire.com/news-releases/goldman-sachs-visa--nike-set-to-join-the-dow-jones-industrial-average-223120141.html | url-status=live }}</ref><ref>{{cite news | url=https://www.wsj.com/articles/SB10001424127887323595004579066683443715254 | title=Alcoa, H-P and Bank of America to Be Dropped from the Dow Jones | last=Barr | first=Collin | work=[[The Wall Street Journal]] | date=September 10, 2013 | url-access=subscription | access-date=August 12, 2017 | archive-date=August 25, 2015 | archive-url=https://web.archive.org/web/20150825070032/http://www.wsj.com/articles/SB10001424127887323595004579066683443715254 | url-status=live }}</ref><ref>{{cite news | url=http://www.thestreet.com/story/12888475/1/missed-out-on-alcoa-hp-how-to-profit-on-nike-and-the-dow-30.html | title=Why Alcoa, Hewlett-Packard Should Still Be in the Dow Industrial 30 | work=[[TheStreet.com]] | access-date=October 19, 2014 | archive-date=August 12, 2017 | archive-url=https://web.archive.org/web/20170812211622/https://www.thestreet.com/story/12888475/1/missed-out-on-alcoa-hp-how-to-profit-on-nike-and-the-dow-30.html | url-status=live }}</ref> * On March 19, 2015, [[Apple Inc.]] replaced [[AT&T]], which had been a component of the DJIA since November 1916.<ref>{{cite press release | url=https://www.prnewswire.com/news-releases/apple-set-to-join-the-dow-jones-industrial-average-300046647.html | title=Apple Set to Join the Dow Jones Industrial Average | publisher=[[PR Newswire]] | date=March 6, 2015 | access-date=September 15, 2019 | archive-date=April 27, 2016 | archive-url=https://web.archive.org/web/20160427105716/http://www.prnewswire.com/news-releases/apple-set-to-join-the-dow-jones-industrial-average-300046647.html | url-status=live }}</ref><ref>{{cite news | url=https://www.usatoday.com/story/money/markets/2015/03/06/apple-added-to-dow/24491631/ | title=iDow: Apple added to iconic Dow stock index | last=Shell | first=Adam | work=[[USA Today]] | date=March 6, 2015 | access-date=August 26, 2017 | archive-date=February 26, 2020 | archive-url=https://web.archive.org/web/20200226171030/https://www.usatoday.com/story/money/markets/2015/03/06/apple-added-to-dow/24491631/ | url-status=live }}</ref> Apple became the fourth company traded on the NASDAQ to be part of the Dow. * On September 1, 2017, [[DowDuPont]] replaced [[DuPont]]. DowDuPont was formed by the merger of [[Dow Chemical Company]] with DuPont.<ref>{{cite press release | url=https://www.prnewswire.com/news-releases/dowdupont-set-to-join-dow-jones-industrial-average-300509503.html | title=DowDuPont Set to Join Dow Jones Industrial Average | publisher=[[PR Newswire]] | date=August 24, 2017 | access-date=February 6, 2018 | archive-date=December 2, 2019 | archive-url=https://web.archive.org/web/20191202185648/https://www.prnewswire.com/news-releases/dowdupont-set-to-join-dow-jones-industrial-average-300509503.html | url-status=live }}</ref> * On June 26, 2018, [[Walgreens Boots Alliance]] replaced [[General Electric]], which had been a component of the DJIA since November 1907, after being part of the inaugural index in May 1896 and much of the 1896 to 1907 period.<ref>{{cite press release | url=https://www.prnewswire.com/news-releases/walgreens-boots-alliance-set-to-join-dow-jones-industrial-average-300669013.html | title=Walgreens Boots Alliance Set to Join Dow Jones Industrial Average | publisher=[[PR Newswire]] | date=June 19, 2018 | access-date=September 15, 2019 | archive-date=December 4, 2019 | archive-url=https://web.archive.org/web/20191204171350/https://www.prnewswire.com/news-releases/walgreens-boots-alliance-set-to-join-dow-jones-industrial-average-300669013.html | url-status=live }}</ref><ref>{{cite news | url=https://www.reuters.com/article/walgreens-boots-ge/walgreens-to-replace-ge-in-dow-jones-industrial-average-idUSL4N1TL4V1 | title=Walgreens to replace GE in Dow Jones Industrial Average | first=Supantha | last=Mukherjee | work=[[Reuters]] | date=June 19, 2018 | access-date=September 15, 2019 | archive-date=June 20, 2018 | archive-url=https://web.archive.org/web/20180620005340/https://www.reuters.com/article/walgreens-boots-ge/walgreens-to-replace-ge-in-dow-jones-industrial-average-idUSL4N1TL4V1 | url-status=live }}</ref><ref>{{cite news | url=https://www.cnbc.com/2018/06/19/walgreens-replacing-ge-on-the-dow.html | title=GE booted from the Dow, to be replaced by Walgreens | first=Angelica | last=LaVito | work=[[CNBC]] | date=June 19, 2018 | access-date=September 15, 2019 | archive-date=October 28, 2019 | archive-url=https://web.archive.org/web/20191028052518/https://www.cnbc.com/2018/06/19/walgreens-replacing-ge-on-the-dow.html | url-status=live }}</ref> * On April 2, 2019, [[Dow Inc.]] replaced [[DowDuPont]]. Dow, Inc. is a spin-off of DowDuPont, itself a merger of [[Dow Chemical Company]] and [[DuPont]].<ref>{{cite press release | url=https://www.prnewswire.com/news-releases/dow-set-to-join-dow-jones-industrial-average-300819082.html | title=Dow Set to Join Dow Jones Industrial Average | publisher=[[PR Newswire]] | date=March 26, 2019 | access-date=September 15, 2019 | archive-date=October 11, 2019 | archive-url=https://web.archive.org/web/20191011150315/https://www.prnewswire.com/news-releases/dow-set-to-join-dow-jones-industrial-average-300819082.html | url-status=live }}</ref><ref>{{cite news | url=https://www.bloomberg.com/news/articles/2019-04-02/dow-inc-jumps-in-first-trading-day-after-split-from-dowdupont | title=Dow Inc. Jumps in Trading Debut After Split From DowDuPont | last=Kaskey | first=Jack | work=[[Bloomberg News]] | date=April 2, 2019 | access-date=April 2, 2019 | archive-date=December 26, 2019 | archive-url=https://web.archive.org/web/20191226001851/https://www.bloomberg.com/news/articles/2019-04-02/dow-inc-jumps-in-first-trading-day-after-split-from-dowdupont | url-status=live }}</ref><ref>{{cite news | url=https://www.wsj.com/articles/dow-inc-to-replace-dowdupont-in-djia-11553638776 | title=Dow Inc. to Replace DowDuPont in DJIA | first=Akane | last=Otani | work=[[The Wall Street Journal]] | date=March 26, 2019 | url-access=subscription | access-date=September 15, 2019 | archive-date=August 14, 2019 | archive-url=https://web.archive.org/web/20190814164600/https://www.wsj.com/articles/dow-inc-to-replace-dowdupont-in-djia-11553638776 | url-status=live }}</ref> * On April 6, 2020, [[Raytheon Technologies]] replaced [[United Technologies]]. Raytheon is the name of the combination of United Technologies and the [[Raytheon Company]], which merged as of April 3, 2020. The newly combined conglomerate does not include previous subsidiaries [[Carrier Global]] or [[Otis Worldwide]].<ref>{{cite press release | url=https://us.spindices.com/documents/indexnews/announcements/20200331-1119193/1119193_1utxspinrtn15otiscarrier.pdf?force_download=true | title=Otis Worldwide and Carrier Global Set to Join S&P 500; American Tower to Join S&P 100 and Macy's to Join S&P SmallCap 600 | publisher=[[PR Newswire]] | date=March 31, 2020 | access-date=April 6, 2020 | archive-date=April 6, 2020 | archive-url=https://web.archive.org/web/20200406192715/https://us.spindices.com/documents/indexnews/announcements/20200331-1119193/1119193_1utxspinrtn15otiscarrier.pdf%3Fforce_download%3Dtrue | url-status=live }}</ref> * On August 31, 2020, [[Amgen]], [[Honeywell]], and [[Salesforce|Salesforce.com]] replaced [[ExxonMobil]], [[Pfizer]], and [[Raytheon Technologies]].<ref>{{cite press release |url=https://www.prnewswire.com/news-releases/salesforcecom-amgen-and-honeywell-international-set-to-join-dow-jones-industrial-average-301117395.html |title=Salesforce.com, Amgen and Honeywell International Set to Join Dow Jones Industrial Average | publisher=[[PR Newswire]] |date=August 24, 2020 |access-date=August 27, 2022}}</ref> * On February 26, 2024, [[Amazon (company)|Amazon]] replaced [[Walgreens Boots Alliance]].<ref>{{cite press release |url=https://www.spglobal.com/spdji/en/documents/indexnews/announcements/20240220-1470711/1470711_djiadjtawbajblu-feb2024.pdf |title=Amazon Set to Join Dow Jones Industrial Average and Uber to Join Dow Jones Transportation Average | publisher=[[S&P Dow Jones Indices]] |date=February 20, 2024 |access-date=February 26, 2024}}</ref> * On November 8, 2024, [[Nvidia]] replaced [[Intel]], and [[Sherwin-Williams]] replaced [[Dow Chemical Company|Dow Inc.]]<ref>{{Cite web |last=Leswing |first=Kif |date=2024-11-01 |title=Nvidia to join Dow Jones Industrial Average, replacing rival chipmaker Intel |url=https://www.cnbc.com/2024/11/01/nvidia-to-join-dow-jones-industrial-average-replacing-intel.html |access-date=2024-11-01 |website=CNBC |language=en}}</ref> ==Investment methods== Investing in the DJIA is possible via [[index fund]]s as well as via [[Derivative (finance)|derivatives]] such as [[option (finance)|option contracts]] and [[futures contract]]s. ===Mutual and exchange-traded funds=== [[Index fund]]s, including [[mutual fund]]s and [[exchange-traded fund]]s (ETF) can replicate, before fees and expenses, the performance of the index by holding the same stocks as the index in the same proportions. An ETF that replicates the performance of the index is issued by [[State Street Corporation]] ({{NYSE Arca|DIA}}).<ref>{{cite news | first=Kevin | last=Johnston | title=Top 4 ETFs to Track the Dow | url=https://www.investopedia.com/etfs/etfs-track-dow/ | work=[[Investopedia]] | date=July 16, 2019 | access-date=February 9, 2018 | archive-date=February 10, 2018 | archive-url=https://web.archive.org/web/20180210002926/https://www.investopedia.com/etfs/etfs-track-dow/ | url-status=live }}</ref> [[ProShares]] offers [[leveraged ETFs]] that attempt to produce three times the daily result of either investing in ({{NYSE Arca|UDOW}}) or [[Short (finance)|short]]ing ({{NYSE Arca|SDOW}}) the Dow Jones Industrial Average.<ref>{{Cite web | url=https://www.proshares.com/funds/ | title=ProShares: Products | publisher=[[ProShares]]}}</ref> ===Futures contracts=== In the derivatives market, the CME Group through its subsidiaries the [[Chicago Mercantile Exchange]] (CME) and the [[Chicago Board of Trade]] (CBOT), issues Futures Contracts; the [http://www.cmegroup.com/trading/equity-index/us-index/e-mini-dow.html E-mini Dow ($5) Futures (YM)], which track the average and trade on their exchange floors respectively. Trading is typically carried out in an [[open outcry]] auction, or over an electronic network such as CME's Globex platform. ===Options contracts=== The [[Chicago Board Options Exchange]] (CBOE) issues option contracts on the Dow through the root symbol DJX. Options on various Dow-underlying ETFs are also available for trading.<ref>{{cite web|url=https://www.nasdaq.com/market-activity/funds-and-etfs/dia/option-chain|title=SPDR Dow Jones Industrial Average ETF (DIA) Option Chain|website=nasdaq.com|access-date=September 15, 2019|archive-date=July 30, 2020|archive-url=https://web.archive.org/web/20200730043457/https://www.nasdaq.com/market-activity/funds-and-etfs/dia/option-chain|url-status=live}}</ref> == Annual returns == The following table shows the annual development of the Dow Jones Index, which was calculated back to 1896.<ref>{{cite web |date= |title=DJIA Yearly Performance History |url=https://www.spglobal.com/spdji/en/web-data-downloads/reports/dja-performance-report-yearly.xls |url-status=live |archive-url=https://web.archive.org/web/20220401070310/https://www.spglobal.com/spdji/en/web-data-downloads/reports/dja-performance-report-yearly.xls |archive-date=April 1, 2022 |access-date=May 13, 2022 |website=S&P Dow Jones Indices}}</ref><ref>{{cite web|url=https://finance.yahoo.com/quote/%5EDJI/history/|title=Dow Jones Industrial Average (^DJI) Historical Data - Yahoo Finance|website=Yahoo! Finance|access-date=January 21, 2020|archive-date=February 4, 2020|archive-url=https://web.archive.org/web/20200204070803/https://finance.yahoo.com/quote/%5EDJI/history|url-status=live}}</ref> {| class="wikitable sortable" style="text-align:right;" |+ End-of-year closing values for DJIA !scope="col"| Year !scope="col"| Closing Value !scope="col"| Net Change !scope="col"| % Change |- !scope="row"| 1896 | 40.45 || โ0.49 || style="color:red"|โ1.20 |- !scope="row"| 1897 | 49.41 || +8.96 || +22.15 |- !scope="row"| 1898 | 60.52 || +11.11 || +22.49 |- !scope="row"| 1899 | 66.08 || +5.56 || +9.19 |- !scope="row"| 1900 | 70.71 || +4.63 || +7.01 |- !scope="row"| 1901 | 64.56 || โ6.15 || style="color:red"|โ8.70 |- !scope="row"| 1902 | 64.29 || โ0.27 || style="color:red"|โ0.42 |- !scope="row"| 1903 | 49.11 || โ15.18 || style="color:red"|โ23.61 |- !scope="row"| 1904 | 69.61 || +20.50 || +41.74 |- !scope="row"| 1905 | 96.20 || +26.59 || +38.20 |- !scope="row"| 1906 | 94.35 || โ1.85 || style="color:red"|โ1.92 |- !scope="row"| 1907 | 58.75 || โ35.60 || style="color:red"|โ37.73 |- !scope="row"| 1908 | 86.15 || +27.40 || +46.64 |- !scope="row"| 1909 | 99.05 || +12.90 || +14.97 |- !scope="row"| 1910 | 81.36 || โ17.69 || style="color:red"|โ17.86 |- !scope="row"| 1911 | 81.68 || +0.32 || +0.39 |- !scope="row"| 1912 | 87.87 || +6.19 || +7.58 |- !scope="row"| 1913 | 78.78 || โ9.09 || style="color:red"|โ10.34 |- !scope="row"| 1914 | 54.58 || โ24.20 || style="color:red"|โ30.72 |- !scope="row"| 1915 | 99.15 || +44.57 || +81.66 |- !scope="row"| 1916 | 95.00 || โ4.15 || style="color:red"|โ4.19 |- !scope="row"| 1917 | 74.38 || โ20.62 || style="color:red"|โ21.71 |- !scope="row"| 1918 | 82.20 || +7.82 || +10.51 |- !scope="row"| 1919 | 107.23 || +25.03 || +30.45 |- !scope="row"| 1920 | 71.95 || โ35.28 || style="color:red"|โ32.90 |- !scope="row"| 1921 | 81.10 || +9.15 || +12.72 |- !scope="row"| 1922 | 98.73 || +17.63 || +21.74 |- !scope="row"| 1923 | 95.52 || โ3.21 || style="color:red"|โ3.25 |- !scope="row"| 1924 | 120.51 || +24.99 || +26.16 |- !scope="row"| 1925 | 156.66 || +36.15 || +30.00 |- !scope="row"| 1926 | 157.20 || +0.54 || +0.34 |- !scope="row"| 1927 | 202.40 || +45.20 || +28.75 |- !scope="row"| 1928 | 300.00 || +97.60 || +48.22 |- !scope="row"| 1929 | 248.48 || โ51.52 || style="color:red"|โ17.17 |- !scope="row"| 1930 | 164.58 || โ83.90 || style="color:red"|โ33.77 |- !scope="row"| 1931 | 77.90 || โ86.68 || style="color:red"|โ52.67 |- !scope="row"| 1932 | 59.93 || โ17.97 || style="color:red"|โ23.07 |- !scope="row"| 1933 | 99.90 || +39.97 || +66.69 |- !scope="row"| 1934 | 104.04 || +4.14 || +4.14 |- !scope="row"| 1935 | 144.13 || +40.09 || +38.53 |- !scope="row"| 1936 | 179.90 || +35.77 || +24.82 |- !scope="row"| 1937 | 120.85 || โ59.05 || style="color:red"|โ32.82 |- !scope="row"| 1938 | 154.76 || +33.91 || +28.06 |- !scope="row"| 1939 | 150.24 || โ4.52 || style="color:red"|โ2.92 |- !scope="row"| 1940 | 131.13 || โ19.11 || style="color:red"|โ12.72 |- !scope="row"| 1941 | 110.96 || โ20.17 || style="color:red"|โ15.38 |- !scope="row"| 1942 | 119.40 || +8.44 || +7.61 |- !scope="row"| 1943 | 135.89 || +16.49 || +13.81 |- !scope="row"| 1944 | 152.32 || +16.43 || +12.09 |- !scope="row"| 1945 | 192.91 || +40.59 || +26.65 |- !scope="row"| 1946 | 177.20 || โ15.71 || style="color:red"|โ8.14 |- !scope="row"| 1947 | 181.16 || +3.96 || +2.23 |- !scope="row"| 1948 | 177.30 || โ3.86 || style="color:red"|โ2.13 |- !scope="row"| 1949 | 200.13 || +22.83 || +12.88 |- !scope="row"| 1950 | 235.41 || +35.28 || +17.63 |- !scope="row"| 1951 | 269.23 || +33.82 || +14.37 |- !scope="row"| 1952 | 291.90 || +22.67 || +8.42 |- !scope="row"| 1953 | 280.90 || โ11.00 || style="color:red"|โ3.77 |- !scope="row"| 1954 | 404.39 || +123.49 || +43.96 |- !scope="row"| 1955 | 488.40 || +84.01 || +20.77 |- !scope="row"| 1956 | 499.47 || +11.07 || +2.27 |- !scope="row"| 1957 | 435.69 || โ63.78 || style="color:red"|โ12.77 |- !scope="row"| 1958 | 583.65 || +147.96 || +33.96 |- !scope="row"| 1959 | 679.36 || +95.71 || +16.40 |- !scope="row"| 1960 | 615.89 || โ63.47 || style="color:red"|โ9.34 |- !scope="row"| 1961 | 731.14 || +115.25 || +18.71 |- !scope="row"| 1962 | 652.10 || โ79.04 || style="color:red"|โ10.81 |- !scope="row"| 1963 | 762.95 || +110.85 || +17.00 |- !scope="row"| 1964 | 874.13 || +111.18 || +14.57 |- !scope="row"| 1965 | 969.26 || +95.13 || +10.88 |- !scope="row"| 1966 | 785.69 || โ183.57 || style="color:red"|โ18.94 |- !scope="row"| 1967 | 905.11 || +119.42 || +15.20 |- !scope="row"| 1968 | 943.75 || +38.64 || +4.27 |- !scope="row"| 1969 | 800.36 || โ143.39 || style="color:red"|โ15.19 |- !scope="row"| 1970 | 838.92 || +38.56 || +4.82 |- !scope="row"| 1971 | 890.20 || +51.28 || +6.11 |- !scope="row"| 1972 | 1,020.02 || +129.82 || +14.58 |- !scope="row"| 1973 | 850.86 || โ169.16 || style="color:red"|โ16.58 |- !scope="row"| 1974 | 616.24 || โ234.62 || style="color:red"|โ27.57 |- !scope="row"| 1975 | 852.41 || +236.17 || +38.32 |- !scope="row"| 1976 | 1,004.65 || +152.24 || +17.86 |- !scope="row"| 1977 | 831.17 || โ173.48 || style="color:red"|โ17.27 |- !scope="row"| 1978 | 805.01 || โ26.16 || style="color:red"|โ3.15 |- !scope="row"| 1979 | 838.74 || +33.73 || +4.19 |- !scope="row"| 1980 | 963.99 || +125.25 || +14.93 |- !scope="row"| 1981 | 875.00 || โ88.99 || style="color:red"|โ9.23 |- !scope="row"| 1982 | 1,046.54 || +171.54 || +19.60 |- !scope="row"| 1983 | 1,258.64 || +212.10 || +20.27 |- !scope="row"| 1984 | 1,211.57 || โ47.07 ||style="color:red"|โ3.74 |- !scope="row"| 1985 | 1,546.67 || +335.10 || +27.66 |- !scope="row"| 1986 | 1,895.95 || +349.28 || +22.58 |- !scope="row"| 1987 | 1,938.83 || +42.88 || +2.26 |- !scope="row"| 1988 | 2,168.57 || +229.74 || +11.85 |- !scope="row"| 1989 | 2,753.20 || +584.63 || +26.96 |- !scope="row"| 1990 | 2,633.66 || โ119.54 ||style="color:red"|โ4.34 |- !scope="row"| 1991 | 3,168.83 || +535.17 || +20.32 |- !scope="row"| 1992 | 3,301.11 || +132.28 || +4.17 |- !scope="row"| 1993 | 3,754.09 || +452.98 || +13.72 |- !scope="row"| 1994 | 3,834.44 || +80.35 || +2.14 |- !scope="row"| 1995 | 5,117.12 || +1,282.68 || +33.45 |- !scope="row"| 1996 | 6,448.26 || +1,331.14 || +26.01 |- !scope="row"| 1997 | 7,908.24 || +1,459.98 || +22.64 |- !scope="row"| 1998 | 9,181.43 || +1,273.19 || +16.10 |- !scope="row"| 1999 | 11,497.12 || +2,315.69 || +25.22 |- !scope="row"| 2000 | 10,786.85 || โ710.27 ||style="color:red"|โ6.18 |- !scope="row"| 2001 | 10,021.50 || โ765.35 ||style="color:red"|โ7.10 |- !scope="row"| 2002 | 8,341.63 || โ1,679.87 ||style="color:red"|โ16.76 |- !scope="row"| 2003 | 10,453.92 || +2,112.29 || +25.32 |- !scope="row"| 2004 | 10,783.01 || +329.09 || +3.15 |- !scope="row"| 2005 | 10,717.50 || โ65.51 ||style="color:red"|โ0.61 |- !scope="row"| 2006 | 12,463.15 || +1,745.65 || +16.29 |- !scope="row"| 2007 | 13,264.82 || +801.67 || +6.43 |- !scope="row"| 2008 | 8,776.39 || โ4,488.43 ||style="color:red"|โ33.84 |- !scope="row"| 2009 | 10,428.05 || +1,651.66 || +18.82 |- !scope="row"| 2010 | 11,577.51 || +1,149.46 || +11.02 |- !scope="row"| 2011 | 12,217.56 || +640.05 || +5.53 |- !scope="row"| 2012 | 13,104.14 || +886.58 || +7.26 |- !scope="row"| 2013 | 16,576.66 || +3,472.52 || +26.50 |- !scope="row"| 2014 | 17,823.07 || +1,246.41 || +7.52 |- !scope="row"| 2015 | 17,425.03 || โ398.04 ||style="color:red"|โ2.23 |- !scope="row"| 2016 | 19,762.60 || +2,337.57 || +13.42 |- !scope="row"| 2017 | 24,719.22 || +4,956.62 || +25.08 |- !scope="row"| 2018 | 23,327.46 || โ1,391.76 ||style="color:red"|โ5.63 |- !scope="row"| 2019 | 28,538.44 | +5,210.98 | +22.34 |- !scope="row"| 2020 |30,606.48 | +2,068.04 | +7.25 |- !2021 |36,338.30 | +5,731.82 | +18.73 |- !2022 |33,147.25 | โ3,191.05 ||style="color:red"|โ8.78 |- !2023 |37,689.54 | +4,542.29 | +13.70 |- !2024 |42,544.22 | +4,854.68 | +12.88 |- |} ==History== {{See also|Closing milestones of the Dow Jones Industrial Average|List of largest daily changes in the Dow Jones Industrial Average}} ===Precursor=== [[File:DJIA Trading Volume.png|thumb|upright=3|DJIA monthly trading volume in shares from 1929 to 2012]] In 1884, [[Charles Dow]] composed his first stock average, which contained nine railroads and two industrial companies that appeared in the ''Customer's Afternoon Letter'', a daily two-page financial news bulletin which was the precursor to ''[[The Wall Street Journal]]''. On January 2, 1886, the number of stocks represented in what is now the ''Dow Jones Transportation Average'' dropped from 14 to 12, as the [[Central Pacific Railroad]] and [[Central Railroad of New Jersey]] were removed. Though comprising the same number of stocks, this index contained only one of the original twelve industrials that would eventually form Dow's most famous index.<ref>{{cite web | url=http://www.fool.com/DDow/HistoryOfTheDow.htm | title=Fool.com: History of the Dow | work=[[The Motley Fool]] | url-status=dead | archive-url=https://web.archive.org/web/20131004224951/http://www.fool.com/DDow/HistoryOfTheDow.htm | archive-date=October 4, 2013 | df=mdy-all}}</ref> ===Initial components=== Dow calculated his first average purely of industrial stocks on May 26, 1896, creating what is now known as the ''Dow Jones Industrial Average''. None of the original 12 industrials still remain part of the index.<ref>{{cite news | url=https://www.forbes.com/sites/steveschaefer/2011/07/15/the-first-12-dow-components-where-are-they-now/ | title=The First 12 Dow Components: Where Are They Now? | first=Steve | last=Schaefer | work=[[Forbes]] | date=July 15, 2011 | access-date=September 15, 2019 | archive-date=January 5, 2018 | archive-url=https://web.archive.org/web/20180105233647/https://www.forbes.com/sites/steveschaefer/2011/07/15/the-first-12-dow-components-where-are-they-now/ | url-status=live }}</ref> * '''American Cotton Oil Company''', a predecessor company to [[Hellmann's and Best Foods]], now part of [[Unilever]].<ref name=first12/> * '''[[American Sugar Refining Company]]''', became Domino Sugar in 1900, now [[Domino Foods, Inc.]]<ref name=first12/> * '''[[American Tobacco Company]]''', broken up in a 1911 [[antitrust]] action. * '''Chicago Gas Company''', bought by [[Peoples Gas]] Light in 1897, was an operating subsidiary of the now-defunct [[Integrys Energy Group]] until 2014.<ref name=first12/> * '''Distilling & Cattle Feeding Company''', now [[Millennium Chemicals]], formerly a division of [[LyondellBasell]].<ref>{{cite press release | url=https://lyondellbasell.mediaroom.com/index.php?s=43&item=54 | title=Lyondell Completes Acquisition of Millennium Chemicals | publisher=[[PR Newswire]] | date=December 1, 2004 | access-date=September 15, 2019 | archive-date=November 26, 2020 | archive-url=https://web.archive.org/web/20201126184036/https://lyondellbasell.mediaroom.com/index.php?s=43&item=54 | url-status=live }}</ref><ref name=first12>{{cite news | url=https://www.fool.com/investing/general/2013/04/09/what-happened-to-the-first-12-stocks-on-the-dow.aspx | title=What Happened to the First 12 Stocks on the Dow? | first=Alex | last=Planes | work=[[The Motley Fool]] | date=April 9, 2013 | access-date=September 15, 2019 | archive-date=November 11, 2019 | archive-url=https://web.archive.org/web/20191111224939/https://www.fool.com/investing/general/2013/04/09/what-happened-to-the-first-12-stocks-on-the-dow.aspx | url-status=live }}</ref> * '''[[General Electric]]''', still in operation, removed from the Dow Jones Industrial Average in 2018.<ref name=first12/> * '''[[Laclede Gas Company]]''', still in operation as [[Spire Inc]], removed from the Dow Jones Industrial Average in 1899.<ref name=first12/> * '''National Lead Company''', now [[NL Industries]], removed from the Dow Jones Industrial Average in 1916.<ref name=first12/> * '''[[North American Company]]''', an [[electric utility]] [[holding company]], broken up by the [[U.S. Securities and Exchange Commission]] (SEC) in 1946.<ref name=first12/> * '''[[Tennessee Coal, Iron and Railroad Company]]''' in [[Birmingham, Alabama]], bought by [[U.S. Steel]] in 1907; U.S. Steel was removed from the Dow Jones Industrial Average in 1991.<ref name=first12/> * '''[[United States Leather Company]]''', dissolved in 1952.<ref name=first12/> * '''[[United States Rubber Company]]''', changed its name to Uniroyal in 1961, merged with private [[Goodrich Corporation]] in 1986, tire business bought by [[Michelin]] in 1990.<ref name=first12/> The remainder of Goodrich remained independent until it was acquired by [[United Technologies]] in 2012 and became a part of [[UTC Aerospace Systems]], now [[Collins Aerospace]], a [[Raytheon Technologies]] subsidiary. ===Early years=== When it was first published in the mid-1880s, the index stood at a level of 62.76. It reached a peak of 78.38 during the summer of 1890, but reached its all-time low of 28.48 in the summer of 1896 during the [[Panic of 1896]]. Many of the biggest percentage price moves in the Dow occurred early in its history, as the nascent industrial economy matured. In the 1900s, the Dow halted its momentum as it worked its way through two financial crises: the [[Panic of 1901]] and the [[Panic of 1907]]. The Dow remained stuck in a range between 53 and 103 until late 1914. The negativity surrounding the [[1906 San Francisco earthquake]] did little to improve the economic climate; the index broke 100 for the first time in 1906.<ref name="millennium" /> At the start of the 1910s, the [[Panic of 1910โ1911]] stifled economic growth. On July 30, 1914, as the average stood at a level of 71.42, a decision was made to close the [[New York Stock Exchange]], and suspend trading for a span of four and a half months. Some historians believe the exchange was closed because of a concern that markets would plunge as a result of panic over the onset of [[World War I]]. An alternative explanation is that the [[United States Secretary of the Treasury]], [[William Gibbs McAdoo]], closed the exchange to conserve the U.S. gold stock in order to launch the [[Federal Reserve System]] later that year, with enough gold to keep the United States on par with the [[gold standard]]. When the markets reopened on December 12, 1914, the index closed at 74.56, a gain of 4.4%. This is frequently reported as a large drop, due to using a later redefinition. Reports from the time say that the day was positive.<ref>{{cite news | url=https://www.nytimes.com/1987/10/26/business/setting-the-record-straight-on-the-dow-drop.html | title=Setting the Record Straight on the Dow Drop | work=[[The New York Times]] | date=October 26, 1987 | url-access=subscription | access-date=February 7, 2017 | archive-date=February 1, 2017 | archive-url=https://web.archive.org/web/20170201105432/http://www.nytimes.com/1987/10/26/business/setting-the-record-straight-on-the-dow-drop.html | url-status=live }}</ref> Following World War I, the United States experienced another economic downturn, the [[PostโWorld War I recession]]. The Dow's performance remained unchanged from the closing value of the previous decade, adding only 8.26%, from 99.05 at the beginning of 1910, to a level of 107.23 at the end of 1919.<ref>[http://www.automationinformation.com/DJIA/dow_jones_closing_prices_1911_to_1920.htm Dow Jones Closing Prices 1911 to 1920] {{webarchive|url=https://web.archive.org/web/20131005004342/http://www.automationinformation.com/DJIA/dow_jones_closing_prices_1911_to_1920.htm |date=October 5, 2013}}. Automationinformation.com</ref> The Dow experienced a long bull run from 1920 to late 1929 when it rose from 73 to 381 points.<ref name="A_1921_to_1930">[http://www.automationinformation.com/DJIA/dow_jones_closing_prices_1921_to_1930.htm Dow Jones Closing Prices 1921 to 1930] {{webarchive|url=https://web.archive.org/web/20131005004054/http://www.automationinformation.com/DJIA/dow_jones_closing_prices_1921_to_1930.htm |date=October 5, 2013 }}. Automationinformation.com.</ref> In 1928, the components of the Dow were increased to 30 stocks near the economic height of that decade, which was nicknamed the [[Roaring Twenties]]. This period downplayed the influence of the [[Depression of 1920โ21|Depression of 1920โ1921]] and certain international conflicts such as the [[PolishโSoviet War]], the [[Irish Civil War]], the [[Turkish War of Independence]] and the initial phase of the [[Chinese Civil War]]. After a peak of 381.17 on September 3, 1929, the bottom of the 1929 crash came just 2 months later on November 13, 1929, at 195.35 intraday, closing slightly higher at 198.69.<ref>{{cite book |title=''Economics and the Public Welfare: A Financial and Economic History of the United States, 1914โ1946'' |url=https://archive.org/details/economicspublicw00ande |url-access=limited |first=Benjamin |last=Anderson |publisher=LibertyPress (2nd ed., 1979) |year=1949 |page=[https://archive.org/details/economicspublicw00ande/page/n232 219] |isbn=0-913966-69-X }}</ref> The [[Wall Street Crash of 1929]] and the ensuing [[Great Depression]] over the next several years saw the Dow continue to fall until July 8, 1932, when it closed at 41.22,<ref><!-- Federal Reserve History (2013) Stock Market Crash of 1929-->{{cite Q|Q120330520}}</ref> roughly two-thirds of its mid-1880s starting point and almost 90% below its peak. Overall for the 1920s decade, the Dow still ended with a healthy 131.7% gain, from 107.23 to 248.48 at the end of 1929.<ref name="A_1921_to_1930" /> In inflation-adjusted numbers, the high of 381.17 on September 3, 1929, was not surpassed until 1954. Marked by global instability and the Great Depression, the 1930s contended with several consequential European and Asian outbreaks of war, leading to the catastrophic [[World War II]] in 1939. Other conflicts during the decade which affected the stock market included the 1936โ1939 [[Spanish Civil War]], the 1935โ1936 [[Second Italo-Abyssinian War]], the [[Soviet-Japanese Border War (1939)|Soviet-Japanese Border War of 1939]], and the [[Second Sino-Japanese War]] of 1937. The United States experienced the [[Recession of 1937โ1938]], which temporarily brought economic recovery to a halt. The [[List of largest daily changes in the Dow Jones Industrial Average|largest one-day percentage gain]] in the index happened in the depths of the 1930s bear market on March 15, 1933, when the Dow gained 15.34% to close at 62.10. However, as a whole throughout the Great Depression, the Dow posted some of its worst performances, for a negative return during most of the 1930s for new and old stock market investors. For the decade, the Dow Jones average was down from 248.48 at the beginning of 1930, to a stable level of 150.24 at the end of 1939, a loss of about 40%.<ref>[http://www.automationinformation.com/DJIA/dow_jones_closing_prices_1931_to_1940.htm Dow Jones Closing Prices 1931 to 1940] {{webarchive|url=https://web.archive.org/web/20131004225612/http://www.automationinformation.com/DJIA/dow_jones_closing_prices_1931_to_1940.htm |date=October 4, 2013}}. Automationinformation.com.</ref> ===1940s=== Post-war reconstruction during the 1940s, along with renewed optimism of peace and prosperity, brought about a 33% surge in the Dow from 150.24 to 200.13. The strength in the Dow occurred despite the [[Recession of 1949]] and various global conflicts. ===1950s=== During the 1950s, the [[Korean War]] and the [[Cold War]] did not stop the Dow's climb higher. A nearly 240% increase in the average from 200.13 to 679.36 ensued over the course of that decade. ===1960s=== The Dow began to stall during the 1960s as the markets trudged through the [[Kennedy Slide of 1962]], but still managed an 18% gain from 679.36 to 800.36. ===1970s=== The 1970s marked a time of economic uncertainty and troubled relations between the U.S. and certain Middle-Eastern countries. The [[1970s energy crisis]] was a prelude to a disastrous economic climate along with [[stagflation]], the combination of high unemployment and high inflation. However, on November 14, 1972, the average closed at 1,003.16, above the 1,000 mark for the first time, during a brief relief rally in the midst of a lengthy bear market.<ref name=millennium/> Between January 1973 and December 1974, the average lost 48% of its value in what became known as the [[1973โ1974 stock market crash]], closing at 577.60 on December 6, 1974.<ref>[https://www.newspapers.com/article/chicago-tribune-dec-6-1974/106591094/ "Jobless boost drives stocks to new 12-year low on Dow"], ''Chicago Tribune'', December 7, 1974, p. 2-7</ref> The nadir came after prices dropped more than 45% over two years since the NYSE's high point of 1,003.16 on November 4, 1972. In 1976, the index reached 1,000 several times and it closed the year at 1,004.75. Although the [[Vietnam War]] ended in 1975, new tensions arose towards [[Iran]] surrounding the [[Iranian Revolution]] in 1979. Performance-wise for the 1970s, the index remained virtually flat, rising 4.8% from 800.36 to 838.74. ===1980s=== [[File:DJIA Black Monday 1987.svg|thumb|left|The Dow fell 22.61% on [[Black Monday (1987)]] from about the 2,500 level to around 1,750. Two days later, it rose 10.15% above the 2,000 level for a mild recovery attempt.]] The 1980s began with the [[early 1980s recession]]. In early 1981, the index broke above 1,000 several times, but then retreated. After closing above 2,000 in January 1987,<ref name=millennium/> the [[List of largest daily changes in the Dow Jones Industrial Average|largest one-day percentage drop]] occurred on [[Black Monday (1987)|Black Monday]], October 19, 1987, when the average fell 22.61%. There were no clear reasons given to explain the crash. On October 13, 1989, the [[Friday the 13th mini-crash]], which initiated the collapse of the [[junk bond]] market, resulted in a loss of almost 7% of the index in a single day.<ref>{{cite news | url=https://www.latimes.com/archives/la-xpm-1989-10-14-mn-334-story.html | title=Dow Falls 190; Drop Is Worst Since '87 Crash | work=[[Los Angeles Times]] | date=October 14, 1989 | url-access=subscription | access-date=September 15, 2019 | archive-date=July 29, 2020 | archive-url=https://web.archive.org/web/20200729225020/https://www.latimes.com/archives/la-xpm-1989-10-14-mn-334-story.html | url-status=live }}</ref> During the 1980s, the Dow increased 228% from 838.74 to 2,753.20; despite the market crashes, [[Silver Thursday]], an [[early 1980s recession]], the [[1980s oil glut]], the [[Japanese asset price bubble]], and other political distractions. The index had only two negative years in the 1980s: in 1981 and 1984. ===1990s=== The 1990s brought on rapid advances in technology along with the introduction of the [[Dot-com company|dot-com era]]. The markets contended with the [[1990 oil price shock]] compounded with the effects of the [[early 1990s recession]] and a brief European situation surrounding [[Black Wednesday]].{{Citation needed|date=May 2020}} Certain influential foreign conflicts such as the [[1991 Soviet coup d'รฉtat attempt]] which took place as part of the initial stages of the [[Dissolution of the Soviet Union]] and the [[Revolutions of 1989]]; the [[First Chechen War]] and the [[Second Chechen War]], the [[Gulf War]], and the [[Yugoslav Wars]] failed to dampen economic enthusiasm surrounding the ongoing [[Information Age]] and the "[[irrational exuberance]]" (a phrase coined by [[Alan Greenspan]]<ref>{{Cite speech |url=http://www.federalreserve.gov/boarddocs/speeches/1996/19961205.htm |title=The Challenge of Central Banking in a Democratic Society |first=Alan |last=Greenspan |date=December 5, 1996 |access-date=May 23, 2020 |archive-date=January 4, 2020 |archive-url=https://web.archive.org/web/20200104120804/https://www.federalreserve.gov/boarddocs/speeches/1996/19961205.htm |url-status=live }}</ref>) of the [[dot-com bubble]].{{Citation needed|date=May 2020}} Between late 1992 and early 1993, the Dow staggered through the 3,000 level making only modest gains as the [[biotechnology]] sector suffered through the downfall of the Biotech Bubble; as many biotech companies saw their share prices rapidly rise to record levels and then subsequently fall to new all-time lows.<ref>{{Cite web |date=November 11, 2023 |title=The Rise and Fall of the Biotech Bubble in the Early 1990s - ModernAgeBank |url=https://modernagebank.com/2023/11/11/the-rise-and-fall-of-the-biotech-bubble-in-the-early-1990s/ |access-date=November 19, 2023 |language=en-US}}</ref> The Dow soared from 2,753 to 8,000 between January 1990 to July 1997.<ref name="millennium">{{cite news | url=https://money.cnn.com/1997/07/16/markets/dow_milestones/ | title=Dow millennium marks | work=[[CNN]] | date=July 16, 1997 | access-date=September 15, 2019 | archive-date=November 26, 2020 | archive-url=https://web.archive.org/web/20201126184037/https://money.cnn.com/1997/07/16/markets/dow_milestones/ | url-status=live }}</ref> In October 1997, the events surrounding the [[1997 Asian financial crisis]] plunged the Dow into a 554-point loss to a close of 7,161.15; a retrenchment of 7.18% in what became known as the [[October 27, 1997 mini-crash]]. However, the Dow continued climbing past 9,000 despite negativity surrounding the [[1998 Russian financial crisis]] along with the subsequent fallout from the 1998 collapse of [[Long-Term Capital Management]] due to bad bets placed on the movement of the [[Russian ruble]].<ref>{{cite news | url=https://money.cnn.com/1998/04/03/markets/milestones/ | title=A new Dow millennium | work=[[CNN]] | date=April 3, 1998 | access-date=September 15, 2019 | archive-date=November 26, 2020 | archive-url=https://web.archive.org/web/20201126184127/https://money.cnn.com/1998/04/03/markets/milestones/ | url-status=live }}</ref> On March 29, 1999, the average closed at 10,006.78, its first close above 10,000. This prompted a celebration on the New York Stock Exchange trading floor, complete with party hats.<ref>{{cite news | url=https://money.cnn.com/1999/03/29/markets/marketwrap/ | title=Dow 10,000 at last | work=[[CNN]] | date=March 29, 1999 | access-date=September 15, 2019 | archive-date=April 16, 2020 | archive-url=https://web.archive.org/web/20200416080005/https://money.cnn.com/1999/03/29/markets/marketwrap/ | url-status=live }}</ref> Total gains for the decade exceeded 315%; from 2,753.20 to 11,497.12, which equates to 12.3% annually. The Dow averaged a 5.3% return compounded annually for the 20th century, a record [[Warren Buffett]] called "a wonderful century"; when he calculated that to achieve that return again, the index would need to close at about 2,000,000 by December 2099.<ref>{{cite web | last=Buffett | first=Warren | title=Letter to Shareholders | url=http://www.berkshirehathaway.com/letters/2007ltr.pdf | publisher=[[Berkshire Hathaway]] | date=February 2008 | access-date=March 4, 2008 | archive-date=March 7, 2008 | archive-url=https://web.archive.org/web/20080307045252/http://www.berkshirehathaway.com/letters/2007ltr.pdf | url-status=live }}</ref> ===2000s=== [[File:DJIA during 911.svg|thumb|left|The Dow fell 14.3% after the [[September 11 attacks]]. Exchanges were closed from September 12 through September 16, 2001.]] On September 17, 2001, the first day of trading after the [[September 11 attacks]] on the United States, the Dow fell 7.1%. However, the Dow began an upward trend shortly after the attacks, and regained all lost ground to close above 10,000 for the year. In 2002, the Dow dropped to a four-year low of 7,286 on September 24, 2002, due to the [[stock market downturn of 2002]] and lingering effects of the [[dot-com bubble]]. Overall, while the NASDAQ index fell roughly 75% and the S&P 500 index fell roughly 50% between 2000 and 2002, the Dow only fell 27% during the same period. In 2003, the Dow held steady within the 7,000 to 9,000-point level and recovered to the 10,000 mark by year end.<ref>{{Cite web |title=Dow Jones โ DJIA โ 100 Year Historical Chart |url=https://www.macrotrends.net/1319/dow-jones-100-year-historical-chart |url-status=live |archive-url=https://web.archive.org/web/20200831074740/https://www.macrotrends.net/1319/dow-jones-100-year-historical-chart |archive-date=August 31, 2020 |access-date=September 2, 2020 |website=MacroTrends.net}}</ref> The Dow continued climbing and reached a record high of 14,198.10 on October 11, 2007, a mark which was not matched until March 2013.<ref>{{cite news | url=https://slate.com/news-and-politics/2013/03/dow-jones-at-all-time-high.html | title=The Dow Jones Has Never Been Higher | first=Josh | last=Voorhees | work=[[Slate (magazine)|Slate]] | date=March 5, 2013 | access-date=September 15, 2019 | archive-date=July 29, 2020 | archive-url=https://web.archive.org/web/20200729224554/https://slate.com/news-and-politics/2013/03/dow-jones-at-all-time-high.html | url-status=live }}</ref> It then dropped over the next year due to the [[2008 financial crisis]]. On September 15, 2008, a wider [[financial crisis]] became evident after the [[Bankruptcy of Lehman Brothers]] along with the economic effect of record high oil prices which had reached almost $150 per [[Barrel of oil equivalent|barrel]] two months earlier. The Dow lost more than 500 points for the day, returning to its mid-July lows below 11,000.<ref>{{Cite news | url=https://money.cnn.com/2008/09/15/markets/markets_newyork2/index.htm | title=Stocks get pummeled | first=Alexandra | last=Twin | work=[[CNN]] | date=September 21, 2008 | access-date=September 15, 2019 | archive-date=January 12, 2020 | archive-url=https://web.archive.org/web/20200112033135/https://money.cnn.com/2008/09/15/markets/markets_newyork2/index.htm | url-status=live }}</ref><ref>{{cite news | url=https://blogs.wsj.com/moneybeat/2013/09/16/this-day-in-crisis-history-sept-15-16-2008/ | title=This Day in Crisis History: Sept. 15-16, 2008 | first=Paul | last=Vigna | work=[[The Wall Street Journal]] | date=September 16, 2013 | url-access=subscription | access-date=September 15, 2019 | archive-date=September 3, 2019 | archive-url=https://web.archive.org/web/20190903215838/https://blogs.wsj.com/moneybeat/2013/09/16/this-day-in-crisis-history-sept-15-16-2008/ | url-status=live }}</ref> A series of [[bailout]] packages, including the [[Emergency Economic Stabilization Act of 2008]], proposed and implemented by the [[Federal Reserve]] and [[United States Department of the Treasury]] did not prevent further losses. After nearly six months of extreme volatility during which the Dow experienced its largest one-day point loss, largest daily point gain, and largest intraday range (of more than 1,000 points) at the time, the index closed at a new 12-year low of 6,547.05 on March 9, 2009,<ref>[https://www.google.com/finance/?cid=983582&startdate=Mar+05,+2009&enddate=Mar+09,+2009 ''Dow Jones Industrial Average Historical Prices''] . [[Google Finance]]</ref> its lowest close since April 1997. The Dow had lost 20% of its value in only six weeks. Towards the latter half of 2009, the average rallied towards the 10,000 level amid optimism that the [[Great Recession]], the [[United States housing bubble]] and the [[2008 financial crisis]], were easing and possibly coming to an end. For the decade, the Dow saw a rather substantial pullback for a negative return from 11,497.12 to 10,428.05, a loss of a 9.3%.<ref>{{cite news | url=https://www.marketwatch.com/story/12-dr-dooms-shred-2010-investing-optimism-2010-01-05 | title=Optimist? Or pessimist? Test your 2010 strategy! | first=Paul B. | last=Farrell | work=[[Marketwatch]] | date=January 5, 2010 | access-date=September 15, 2019 | archive-date=August 10, 2020 | archive-url=https://web.archive.org/web/20200810235746/https://www.marketwatch.com/story/12-dr-dooms-shred-2010-investing-optimism-2010-01-05 | url-status=live }}</ref> ===2010s=== [[File:DJIA 2000s graph (log).svg|thumb|upright=1.7|The Dow from January 2000 through February 2015|alt=A graph that illustrates a trading range from the mid-7,000 level to the 14,000 level aside from a low in the mid-6,000 level in early 2009. The average traded at or near the 10,000 range for most of the 2000s decade.]] During the first half of the 2010s decade, aided by the [[Federal Reserve]]'s loose [[monetary policy]] including [[quantitative easing]], the Dow made a notable rally attempt. This was despite significant volatility due to growing global concerns such as the [[European debt crisis]], the [[Dubai World]] 2009 debt standstill, and the [[2011 United States debt-ceiling crisis]].{{citation needed|date=March 2020}} On May 6, 2010, the Dow lost 9.2% intra-day and regained nearly all of it within a single hour. This event, which became known as the [[2010 Flash Crash]], sparked new regulations to prevent future incidents.<ref>Paradis, Tim (May 6, 2010).[https://finance.yahoo.com/news/Wall-St-rollercoaster-Stocks-apf-892184148.html?x=0 Wall St. rollercoaster: Stocks fall nearly 10 pct] {{webarchive |url=https://web.archive.org/web/20100509053024/https://finance.yahoo.com/news/Wall-St-rollercoaster-Stocks-apf-892184148.html?x=0 |date=May 9, 2010 }}. ''[[Associated Press]]''. Retrieved May 7, 2010.</ref> Six years after its previous high in 2007, the Dow finally closed at a new record high on March 5, 2013.<ref>{{cite news | url=https://money.cnn.com/2013/03/05/investing/stocks-markets/index.html | title=Dow closes at record high | first=Hibah | last=Yousuf | work=[[CNN]] | date=March 5, 2013 | access-date=June 15, 2019 | archive-date=April 23, 2019 | archive-url=https://web.archive.org/web/20190423045109/https://money.cnn.com/2013/03/05/investing/stocks-markets/index.html | url-status=live }}</ref> It continued rising for the next several years past 17,000 points until a brief [[2015โ16 stock market selloff|2015โ2016 stock market selloff]] in the second half of 2015.<ref>{{cite news | url=https://www.cnbc.com/2015/12/31/us-markets.html | title=Stocks close lower; worst year for S&P, Dow since 2008 | first=Evelyn | last=Cheng | work=[[CNBC]] | date=December 31, 2015 | access-date=September 15, 2019 | archive-date=September 26, 2019 | archive-url=https://web.archive.org/web/20190926092724/https://www.cnbc.com/2015/12/31/us-markets.html | url-status=live }}</ref> It then picked up again in early 2016 and climbed past 25,000 points on January 4, 2018.<ref>{{cite news | url=https://money.cnn.com/2018/01/04/investing/dow-25000-explainer/index.html | title=Dow 25,000: A milestone 120 years in the making | first=Chris | last=Isidore | work=[[CNN]] | date=January 4, 2018 | access-date=September 15, 2019 | archive-date=September 26, 2019 | archive-url=https://web.archive.org/web/20190926020326/https://money.cnn.com/2018/01/04/investing/dow-25000-explainer/index.html | url-status=live }}</ref> On November 9, 2016, the day after [[Donald Trump]]'s victory over [[Hillary Clinton]] in the [[2016 United States presidential election|U.S. presidential election]], the index soared, coming within roughly 25 points of its all-time intraday high to that point.<ref>{{Cite web|last1=Imbert|first1=Fred|last2=Cheng|first2=Evelyn|date=November 9, 2016|title=Dow closes up 250 points; financials surge after Trump election upset|url=https://www.cnbc.com/2016/11/09/us-markets.html|url-status=live|access-date=September 29, 2021|website=[[CNBC]]|archive-url=https://web.archive.org/web/20161109154726/http://www.cnbc.com/2016/11/09/us-markets.html |archive-date=November 9, 2016 }}</ref> Volatility returned in 2018 when the Dow fell nearly 20%.<ref>{{cite news | url=https://www.cnbc.com/2018/02/04/us-stocks-interest-rates-futures.html | title=Dow plunges 1,175 points in wild trading session, S&P 500 goes negative for 2018 | first=Fred | last=Imbert | work=[[CNBC]] | date=February 4, 2018 | access-date=February 5, 2018 | archive-date=February 5, 2018 | archive-url=https://web.archive.org/web/20180205210508/https://www.cnbc.com/2018/02/04/us-stocks-interest-rates-futures.html | url-status=live }}</ref><ref>{{Cite news | url=https://www.cnn.com/2018/11/19/investing/stocks-bear-market-morgan-stanley/index.html | title=Morgan Stanley: We are in a bear market | first=Matt | last=Egan | work=[[CNN]] | date=November 19, 2018 | access-date=November 20, 2018 | archive-date=November 20, 2018 | archive-url=https://web.archive.org/web/20181120030435/https://www.cnn.com/2018/11/19/investing/stocks-bear-market-morgan-stanley/index.html | url-status=live }}</ref><ref>{{Cite news| url=https://www.investors.com/market-trend/stock-market-today/dow-today-plunges-400-points-leading-stocks-bear-market/| title=Dow Today Plunges; Leading Stocks In Bear Market| work=[[Investor's Business Daily]]| date=November 19, 2018| access-date=November 20, 2018| archive-date=November 20, 2018| archive-url=https://web.archive.org/web/20181120010722/https://www.investors.com/market-trend/stock-market-today/dow-today-plunges-400-points-leading-stocks-bear-market/| url-status=live}}</ref> By early January 2019, the index had quickly rallied more than 10% from its Christmas Eve low.<ref>{{Cite news | url=https://www.marketwatch.com/story/dow-and-sp-500-are-on-the-brink-of-exiting-correction-territory-2019-01-09 | title=Dow and S&P 500 escape correction territory after 5-day stock-market surge | last=DeCambre | first=Mark | work=[[MarketWatch]] | date=January 9, 2019 | access-date=March 20, 2019 | archive-date=February 3, 2019 | archive-url=https://web.archive.org/web/20190203180710/https://www.marketwatch.com/story/dow-and-sp-500-are-on-the-brink-of-exiting-correction-territory-2019-01-09 | url-status=live }}</ref> Overall in the 2010s decade, the Dow increased from 10,428.05 to 28,538.44 for a substantial gain of 174%.<ref>{{Cite web|url=https://www.macrotrends.net/1358/dow-jones-industrial-average-last-10-years|title=Dow Jones โ 10 Year Daily Chart|website=macrotrends.net|access-date=January 14, 2020|archive-date=January 17, 2020|archive-url=https://web.archive.org/web/20200117102326/https://www.macrotrends.net/1358/dow-jones-industrial-average-last-10-years|url-status=live}}</ref> ===2020s=== [[File:Dow jones daily close logged.png|thumb|upright=2.6|The Dow Jones Industrial Average daily closing value plotted on a log-10 scale]] Despite the emerging [[COVID-19 pandemic]], the Dow continued its bull run from the previous decade before peaking at 29,551.42 on February 12, 2020 (29,568.57 intraday on the same day). The index slowly retreated for the remainder of the week and into the next week, before coronavirus fears and an [[2020 RussiaโSaudi Arabia oil price war|oil price war between Saudi Arabia and Russia]] sent the index into a [[2020 stock market crash|tailspin]], recording several days of losses<ref>{{cite web|url=https://www.cnbc.com/2020/03/15/traders-await-futures-open-after-fed-cuts-rates-launches-easing-program.html|title=Dow drops nearly 3,000 points, as coronavirus collapse continues; worst day since '87|first=Fred|last=Imbert|date=March 15, 2020|website=CNBC|access-date=March 16, 2020|archive-date=March 16, 2020|archive-url=https://web.archive.org/web/20200316205041/https://www.cnbc.com/2020/03/15/traders-await-futures-open-after-fed-cuts-rates-launches-easing-program.html|url-status=live}}</ref> (and gains<ref>{{cite news|url=https://www.npr.org/2020/03/13/815344533/dow-expected-to-open-up-more-than-1-100-points|title=Dow Soars Nearly 2,000 Points In Rebound From Biggest Drop Since 1987 |website=NPR|date=March 13, 2020|access-date=March 16, 2020|archive-date=March 14, 2020|archive-url=https://web.archive.org/web/20200314181640/https://www.npr.org/2020/03/13/815344533/dow-expected-to-open-up-more-than-1-100-points|url-status=live|last=Schneider|first=Avie}}</ref>) of at least 1,000 points, a typical symptom of a bear market<ref name="CNBC">{{Cite web|url=https://www.cnbc.com/2020/03/11/futures-are-steady-wednesday-night-after-dow-closes-in-bear-market-traders-await-trump.html|title=Dow drops more than 8%, heads for biggest one-day plunge since 1987 market crash|website=[[CNBC]]|date=March 12, 2020|access-date=March 12, 2020|first1=Fred|last1=Imbert|first2=Thomas|last2=Franck|archive-date=March 12, 2020|archive-url=https://web.archive.org/web/20200312000949/https://www.cnbc.com/2020/03/11/futures-are-steady-wednesday-night-after-dow-closes-in-bear-market-traders-await-trump.html|url-status=live}}</ref> as previously seen in October 2008 during the [[2008 financial crisis]]. Volatility rose high enough to trigger multiple 15-minute [[trading curb|trading halts]].<ref>{{cite web |title=Stocks plunge at market open, trading halts after Dow drops 1800 points |url=https://www.msnbc.com/stephanie-ruhle/watch/stocks-plunge-at-market-open-trading-halts-after-dow-drops-1800-points-80319557862 |website=MSNBC |access-date=March 9, 2020 |archive-date=May 8, 2020 |archive-url=https://web.archive.org/web/20200508025652/https://www.msnbc.com/stephanie-ruhle/watch/stocks-plunge-at-market-open-trading-halts-after-dow-drops-1800-points-80319557862 |url-status=live}}</ref> In the first quarter of 2020, the DJIA fell 23%<!--6,621 points, from 28,538 to 21,917-->, its worst quarter since 1987.<ref>{{cite web |last1=Stevens |first1=Pippa |title=Stock futures point to an opening bounce on Wall Street after second quarter's rocky start |url=https://www.cnbc.com/2020/04/01/stock-market-futures-open-to-close-news.html |website=[[CNBC]] |archive-url= https://web.archive.org/web/20200402084844/https://www.cnbc.com/2020/04/01/stock-market-futures-open-to-close-news.html |archive-date=April 2, 2020 |quote=The Dow fell more than 23% in the first quarter; that was also its biggest quarterly fall since 1987|date=April 1, 2020 |url-status=live}}</ref> The market recovered in the third quarter, returning to 28,837.52 on October 12, 2020, and peaked momentarily at a new all-time high of 29,675.25 on November 9, 2020, at 14:00 ET, following that day's announcement of the success of the [[PfizerโBioNTech COVID-19 vaccine]] in Phase III clinical trials.<ref>{{Cite news|title=Dow Jones soars more than 800 points on vaccine hopes|url=https://abcnews.go.com/Business/dow-surges-1500-points-vaccine-hopes/story?id=74104964 |access-date=November 2, 2021 |website=ABC News|language=en}}</ref> The Dow (as reported by the United Press International) closed over 30,000 on December 31, 2020, at a record 30,606.48. On November 24, following news that the [[presidential transition of Joe Biden]] was approved, the Dow increased by more than 500 points, closing at 30,046.24. On January 22, 2024, the Dow Jones crossed 38,000 points for the first time; a month later it surpassed 39,000; and in May, it surpassed 40,000 points. ==Computation== The DJIA is computed as the sum of the prices of all thirty stocks divided by a [[divisor]], the Dow Divisor. The divisor is adjusted in case of stock splits, spinoffs or similar structural changes, to ensure that such events do not in themselves alter the numerical value of the DJIA. Early on, the initial divisor was composed of the original number of component companies; this initially made the DJIA a simple [[arithmetic]] average. The present divisor, after many adjustments, is less than one, making the index larger than the sum of the prices of the components. That is: :<math> \text{DJIA} = {\sum p \over d}</math> where '''''p''''' are the prices of the component stocks and '''''d''''' is the ''Dow Divisor''. Events such as [[stock split]]s or changes in the list of the companies composing the index alter the sum of the component prices. In these cases, in order to avoid discontinuity in the index, the Dow Divisor is updated so that the quotations right before and after the event coincide: :<math> \text{DJIA} = {\sum p_\text{old} \over d_\text{old} } = {\sum p_\text{new} \over d_\text{new} }.</math> {{As of|2024|11|08|since=y|df=us|post=,}} the Dow Divisor is '''0.16268413125742'''<ref>{{cite web |url=https://www.barrons.com/market-data/market-lab?mod=md_subnav |title=Market Lab |website=Barrons.com |date=October 15, 2024 }}</ref><ref>{{cite web |url=https://www.morningstar.com/news/marketwatch/2024022666/amazons-stock-could-lose-to-walgreens-this-year-if-the-dow-jinx-holds |title=Amazon's stock could lose to Walgreens' this year if the Dow jinx holds |website=Morningstar.com |date=February 26, 2024 |access-date=February 28, 2024}}</ref> and every $1 change in price in a particular stock within the average equates to a '''6.146881''' (or 1 '''รท''' 0.16268413125742) point movement. ==Assessment== === Quality as a proxy of the stock market === Despite its unusual weighting by price rather than market capitalization, the Dow Jones Industrial Average is highly correlated with other proxies of the US equities market, particularly the [[S&P 500|S&P 500 Index]].<ref name=spglobal>{{Cite web |title=Icons: The S&P 500ยฎ and The Dowยฎ |url=https://www.spglobal.com/spdji/en/research-insights/index-literacy/the-sp-500-and-the-dow/ |website=[[S&P Global]] |archive-url=https://web.archive.org/web/20250104224924/https://www.spglobal.com/spdji/en/research-insights/index-literacy/the-sp-500-and-the-dow/ |archive-date=2025-01-04 |url-status=live}}</ref> Between {{Date range|1980|January|4=2023|5=November}}, the DJIA returned an annualized 8.90%, with the S&P 500 returning a nearly identical 8.91%.<ref>{{Cite web |last=Bates |first=Alex |date=2023-11-03 |title=Head-to-Head: Dow vs. S&P 500 (And The Shocking Results) |url=https://www.stlouistrust.com/insights/head-to-head-dow-vs-sp-500-and-the-shocking-results/ |access-date=2024-08-28 |website=St. Louis Trust & Family Office |language=en-US}}</ref> === Issues with market representation === With the inclusion of only 30 stocks, critics such as [[Ric Edelman]] argue that the DJIA is an inaccurate representation of overall market performance compared to more comprehensive indices such as the S&P 500 Index or the [[Russell 3000 Index]]. Additionally, the DJIA is criticized for being a [[price-weighted index]], which gives higher-priced stocks more influence over the average than their lower-priced counterparts, but takes no account of the relative industry size or market capitalization of the components. For example, a $1 increase in a lower-priced stock can be negated by a $1 decrease in a much higher-priced stock, even though the lower-priced stock experienced a larger [[percentage]] change. In addition, a $1 move in the smallest component of the DJIA has the same effect as a $1 move in the largest component of the average. For example, during SeptemberโOctober 2008, former component [[AIG]]'s reverse split-adjusted stock price collapsed from $22.76 on September 8 to $1.35 on October 27; contributing to a roughly 3,000-point drop in the index.<ref>{{cite news | last=La Monica | first=Paul | url=https://money.cnn.com/2008/09/14/markets/thebuzz/ | title=Toss AIG from the Dow! | work=[[CNN]] | date=September 15, 2008 | access-date=September 15, 2019 | archive-date=October 29, 2019 | archive-url=https://web.archive.org/web/20191029130700/https://money.cnn.com/2008/09/14/markets/thebuzz/ | url-status=live }}</ref> {{As of|2021|06|post=,}} Goldman Sachs and UnitedHealth Group are among the highest-priced stocks in the average and therefore have the greatest influence on it. Alternately, Cisco Systems and Coca-Cola are among the lowest-priced stocks in the average and have the least sway in the price movement.<ref>{{cite web|url=http://indexarb.com/indexComponentWtsDJ.html|title=Index Component Weights of Stocks in the Dow Jones Industrial Average|publisher=Ergo Inc.|website=Index Insight and Market Timing Tools: Futures, Equities, Options|access-date=July 25, 2014|archive-date=July 28, 2014|archive-url=https://web.archive.org/web/20140728160411/http://indexarb.com/indexComponentWtsDJ.html|url-status=live}}</ref> Critics of the DJIA and most securities professionals{{Who|date=August 2024}} recommend the [[capitalization-weighted index|market-capitalization weighted]] S&P 500 Index or the [[Wilshire 5000]], the latter of which includes most publicly listed U.S. stocks, as better indicators of the U.S. stock market. ===Correlation among components=== A study between the correlation of components of the Dow Jones Industrial Average compared with the movement of the index finds that the correlation is higher when the stocks are declining. The correlation is lowest in a time when the average is flat or rises a modest amount.<ref>{{cite journal | author-link1=Tobias Preis|first1=Tobias |last1=Preis |first2=Dror Y. |last2=Kenett |author-link3=H. Eugene Stanley |first3=H. Eugene |last3=Stanley |author-link4=Dirk Helbing|first4=Dirk |last4=Helbing |author-link5=Eshel Ben-Jacob|first5=Eshel |last5=Ben-Jacob | title=Quantifying the Behavior of Stock Correlations Under Market Stress | journal=[[Scientific Reports]] | volume= 2 | page=752 | year=2012 | doi=10.1038/srep00752 | pmid=23082242 | pmc=3475344| bibcode= 2012NatSR...2..752P}}</ref> ==See also== {{Portal|Capitalism|Business and economics}} * [[Closing milestones of the Dow Jones Industrial Average]] * [[List of largest daily changes in the Dow Jones Industrial Average]] * [[William Peter Hamilton]] * [[S&P 500]] ==References== {{Reflist}} ==Further reading== * {{cite book |last=Stillman |first=Richard |year=1986 |title=Dow Jones Industrial Average: History and Role in an Investment Strategy |url=https://archive.org/details/dowjonesindustri00stil |url-access=registration |location=Homewood, Ill. |publisher=Dow Jones-Irwin |isbn=9780870945861 |oclc=424238820}} ==External links== {{Commons category|Dow Jones Industrial Average}} * {{Official website|https://www.spglobal.com/spdji/en/indices/equity/dow-jones-industrial-average/}} {{Finance links | name = Dow Jones Industrial Average | google = .DJI:INDEXDJX | yahoo = ^DJI }} {{Dow Jones Industrial Average companies}} {{North and South American Stock market indices}} {{News Corporation}} {{Authority control}} [[Category:Dow Jones Industrial Average| ]] [[Category:1896 establishments in the United States]] [[Category:American stock market indices]] [[Category:Dow Jones & Company]] [[Category:S&P Dow Jones Indices]]
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