We want our readers to share their views and exchange ideas and facts in a safe space. Shares of Intel, IBM and Home Depot helped drive the record-setting rally. The DJIA tracks the price movements of 30 large companies in the U.S.. The selected companies are from all major U.S. sectors, except utilities and transportation. These latest changes mark just the 53rd adjustment to the DJIA since its inception in 1896 and highlight a shift toward companies that are more relevant in their respective industries. The Dow Jones Industrial Average (DJIA) tracks thirty of America’s biggest and most established companies, acting like a quick temperature check of the U.S. economy.
Since the index was first recorded 118 years ago at 40.94, it has a 3.5% annualized return, illustrating that, even if the Dow Jones sees a drop, there is growth for long-term investors. 5This was the Dow’s close at the peak of the 1920s bull market on Tuesday, September 3, 1929, before the stock market crash. This level would not be seen again until Tuesday, November 23, 1954, more than 25 years later.
(33 record closes)
- Though the method has changed some since the index was first calculated in May 1896, it is still followed as a broad indicator of the strength in the U.S. stock market.
- It was the largest amount since 2007, right before the stock market crashed.
- That cemented the relationship between the Dow’s performance and the overall economy.
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- On July 3, the Dow hit a new high when the Trump administration announced it would resume trade negotiations with China, averting additional tariffs (taxes on imports).
- At the same time, the strength in the U.S. labor market meant extremely competitive wages driving consumer demand.