What Is the Dow Jones Industrial Average DJIA?

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1. Take a look at the Dow Jones Industrial Average over the course of its history and you also have a reliable history of the U.S. stock market.
2. The Dow Jones Industrial Average (DJIA), Dow Jones, or simply the Dow (/ˈdaʊ/), is a stock market index of 30 prominent companies listed on stock exchanges in the United States.
3. The Dow Jones Industrial Average is made up of 30 large stocks.
4. Of the 26 records set that year, 17 occurred after the presidential election.
5. The index’s highest price at any time was the same day, 39,282.28.

Alternatively, investors could take a more conservative approach and buy shares of the SPDR Dow Jones Industrial Average ETF (DIA 1.03%). Building on that, Salesforce and Microsoft are leaning into the growing demand for artificial intelligence (AI). In fact, Morgan Stanley analyst Keith Weiss argues Microsoft in particular is the software company best positioned to monetize generative AI. But both could be long-term winners as more businesses seek productivity gains through automation. Since the Great Depression, 2007 to 2008 has been the most dramatic period for the DJIA.

The Dow has also underperformed the other two major indexes over the last five-year and 10-year time periods. A November streak occurred after Donald Trump’s presidential win on Nov. 8. Traders were confident in a business-friendly Republican president. The Dow responded with new highs throughout the latter part of 2019, even though trade negotiations had broken down until November. It hit a milestone on July 11, closing above 27,000, and then another on Nov. 15, closing above 28,000 (in the chart below, milestones are noted).

For example, if you’re looking for value and income over growth, you may not want to invest in a company like Salesforce at all. If you do want some growth and are willing to take on more risk, you may want to avoid stocks like Verizon Communications velocity trade and Walgreens Boots Alliance. Instead of buying a Dow ETF, you can pick your 10 favorite Dow stocks and buy a share of each to create your own mini Dow portfolio. Where p are the prices of the component stocks and d is the Dow Divisor.

On Oct. 9, 2007, the Dow hit a pre-recession high, closing at 14,164.53 despite growing concerns around the subprime mortgage crisis. Leading up to the Great Recession, banks had offered easy home loans to virtually everyone, including those with bad credit. Falling home prices throughout 2007 prompted defaults on subprime mortgages. The Federal broker liteforex Reserve began buying banks’ mortgages as they recognized that banks did not have adequate liquidity. Take a look at the Dow Jones Industrial Average over the course of its history and you also have a reliable history of the U.S. stock market. Its peaks and valleys shed light on the workings — and volatility — of the global economy.

The easiest way to invest in the Dow may be to buy shares in State Street Global Advisors’ SPDR Dow Jones Industrial Average ETF Trust, which trades under the ticker symbol DIA. Of the 26 records set that year, 17 occurred after the presidential election. The index’s 2016 closing high was 19,974.62, set on Dec. 20, 2016. It hit two of them in the first few weeks in January, closing above 25,000 on Jan. 4. The index breached 26,000 on Jan. 17, then continued on to set 15 closing records in the rest of 2018.

The Dow sees the end of a long bull market on Jan. 14, 2000, in part due to the strength of the Internet business and the subsequent bursting of the dot-com bubble. It then falls on March 7, 2000, rebounds to 11,124.83 on April 25, and falls again to 9,973.46 by March 14, 2001, beginning the 2001 recession. It then enters a period of volatility and drops to 8,920.70 after markets open following velocity trade the September 11, 2001 terrorist attacks. The recession ends in November 2002 after a period of war-related uncertainty. Because of the price-weighted calculation method, a $1 change in the price of a stock in the DJIA doesn’t equate to one point in the index since that depends on the Dow divisor at the time. As such, point moves are a way to measure the relative change in the index’s value.

Investment methods

The following are some milestones achieved by the Dow Jones Industrial Average. In parentheses, when helpful, we provide the Dow’s points as inflation-adjusted to Feb. 23, 2024, for a relative comparing to its record high.

The Dow Jones Just Hit an All-Time High. Here’s Why It Could Beat the Nasdaq in 2024.

Erika Rasure is globally-recognized as a leading consumer economics subject matter expert, researcher, and educator. She is a financial therapist and transformational coach, with a special interest in helping women learn how to invest. With just a 0.16% expense ratio, the Dow ETF Trust provides a simple way of investing in the Dow.

Cuban Missile Crisis

The Dow Jones Industrial Average hit 10,000 for the first time in March 1999. The DJIA then hit 11,750 in January 2000, before falling to below 7,200 in October 2002 after the dot-com crash. Many critics argue that the Dow does not significantly represent the state of the U.S. economy as it consists of only 30 large-cap U.S. companies. They believe the number of companies is too small and it neglects companies of different sizes.

But an even better approach may be to use the Dow as a starting point to find companies that fit your investment objectives. The Dow Jones Industrial Average achieved a new all-time high close of 37,557.92 on Dec. 19. Despite the impressive return, the Dow is still underperforming the Nasdaq Composite and the S&P 500 year to date.

Please see Titan’s Legal Page for additional important information. In the midst of a recession, the Dow has two milestone days of gains. On Oct. 13, 2008, the Dow gains 936 points after governments and central banks pour money into the markets to jumpstart the global economy.

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