The Dow Jones History

 The Dow Jones History 

The Dow Jones Industrial Average (DJIA) is a stock market index that tracks the performance of 30 large publicly traded companies in the United States. It was first published on May 26, 1896, and is considered to be one of the oldest and most closely watched stock market indices in the world.

The original index included only 12 companies, but it has expanded over the years to include 30 companies. The companies included in the index are chosen by the editors of the Wall Street Journal based on their market capitalization, liquidity, and industry representation. The index is calculated based on the stock prices of the included companies, with each stock price weighted according to the number of shares outstanding.

The Dow Jones Industrial Average has had a long and volatile history. It reached its first major milestone in 1906, when it reached the 100-point level for the first time. In the 1920s, the index reached new highs as the US economy boomed, but it also experienced a significant crash in 1929, signaling the start of the Great Depression. The index reached its all-time high in 2007, before experiencing a significant downturn during the 2008 financial crisis. The Dow Jones Industrial Average has since recovered and reached new highs in recent years.

The Dow Jones Industrial Average is often used as a benchmark for the overall performance of the US stock market and is closely watched by investors and analysts around the world. It is also considered a barometer of the US economy. However, it's worth noting that the DJIA only reflects the performance of 30 companies and it is not a representative sample of the entire market.