The Dow Jones Industrial Average was created in 1896

The Dow Jones Industrial Average was created in the aftermath of a financial crisis

Charles Dow introduced the index in 1896, following the Panic of 1893—a severe economic downturn. The DJIA offered investors a straightforward tool to track recovery and gauge the health of America’s emerging industrial economy.

The Dow Jones Industrial Average is a stock market index

The Dow Jones Industrial Average tracks 30 large U.S. companies from all major U.S. sectors except for utilities and transportation. It's considered a bellwether of the U.S. economy.

The Dow Divisor keeps the index consistent through time

To adjust for stock splits, mergers, and replacements, the DJIA uses a figure called the Dow Divisor. Originally valued around 12 in 1896, and now less than one, it ensures today’s index levels remain comparable with the past.

The Dow remains a shorthand for America’s economic health

For over a century, the Dow Jones Industrial Average has been one of the most closely watched market barometers. Its rises and falls dominate headlines and politics, shaping how Americans perceive the strength of their economy.

The Dow now tracks 30 major US companies across various industries

Since 1928, the DJIA has included 30 firms. Today's group spans technology, healthcare, and finance—with Apple, Microsoft, JPMorgan Chase, Pfizer, and Coca-Cola among its most recognized components.

The Dow Jones & Company began as a small news service in 1882

Founded in 1882 by Charles Dow, Edward Jones and Charles Bergstresser, Dow Jones & Company started with hand-delivered market bulletins. Today it’s a global financial news giant, best known for publishing The Wall Street Journal.

See every company in and out of the Dow since 1928

The index has had 30 companies since 1928. See each company’s tenure on the index and what firms were added or replaced by year and industry.

The Dow’s price-weighted formula makes stock price matter more than size

Unlike most indices, which weigh companies by market value, the DJIA is price-weighted—meaning higher-priced stocks have more influence on its movements. As a result, a company’s share price matters more than its overall size.

Critics argue the Dow no longer reflects the modern economy

With only 30 companies and a price-weighted formula, skeptics say the DJIA underrepresents vast sectors of the market. They claim it is outdated, though its close correlation with the broader S&P 500 keeps it relevant.

Dow components are chosen by a committee, not a formula

Unlike many indices, the Dow has no strict rules for inclusion. A small committee at S&P Dow Jones Indices uses judgment—favoring companies with strong reputations, steady growth, and broad investor interest.

In 1999, Microsoft and Intel’s addition signaled the information tech era for the Dow

Microsoft and Intel became the first information technology firms added to the DJIA. Their inclusion marked a turning point—the digital revolution and tech began to drive the American economy.

A stock market timeline

The stock market has come a long way since the 1600s, when the first version of a stock exchange was created in Amsterdam. Mile markers along the way include everything from the Dow Jones Industrial Average's creation in 1896 to the stock market woes during the COVID-19 pandemic in 2020.

The Dow Jones Industrial Average vs. the S&P 500: Which one is a better representation of the economy?

The Dow and S&P 500 are both indexes meant to provide a broad representation of the economy. The Dow has 30 companies and is weighted by share price, while the S&P 500 has 500 different companies weighted by market capitalization. Since the indexes are so different, investors don't always agree on which index is a better representation of the economy—though the two move in the same direction more than 90% of the time.

Dow Theory laid the groundwork for modern market analysis

Developed by Charles Dow in the late 19th century, Dow Theory argued that markets move in trends. Its principles—confirmation, trends and volume—still influence technical analysis today.

Relive the biggest swings in the Dow’s history

From the 1929 crash to the Coronavirus Pandemic in 2020, this piece spotlights five of the most dramatic single-day moves in the Dow’s 125-year history.

Before the S&P 500 launched in 1957, Standard and Poor's had a daily index with just 90 companies

Unlike previous indexes from S&P, the S&P 500 could be computed in real time using computer technology that tracked stock tickers across stock exchanges. This innovation is partly what led to 500 companies being listed on the index, a huge increase from the 90 companies in S&P's flagship index when the company had to do all the analysis by hand.

GE’s removal marked the end of an era for the Dow

General Electric, the last surviving original Dow component, was dropped in 2018, after years of decline. Its exit symbolized the fading dominance of industrial giants and the index’s shift toward technology and healthcare.

The Nasdaq 100 index tracks the exchange's 100 largest non-financial companies

This index was created in 1985, over a decade after the Nasdaq first launched. The companies on the index must meet certain criteria, including having a minimum average daily trading value of $5M.

The Nasdaq's 'Magnificent 7' companies are responsible for roughly 40% of the Nasdaq 100 index's gains, while the remaining 93 companies account for the other 60%.

While the first exchange-traded fund (a 'basket' of different assets that can be bought and sold on a stock exchange) in the US only launched in 1993, the global ETF market has grown to more than $10T in the short time since.

Dozens of S&P 500 stocks, including Coca-Cola and Walmart—known as the dividend aristocrats—have increased dividends every year for 25 years

Mutual funds were first created and sold in the US in 1924

Mutual funds were created in 1924, became popular in the '80s and '90s when investors saw a better payoff. Since then, they’ve evolved to be one of the most popular investment options today.

The concept of CDs dates back to the 1600s in Europe

Banks in the US started issuing CDs in the early 1800s as the banking system began to take shape following the Revolutionary War. The federal government did not formally insure CDs until the FDIC was formed in 1933.

The American middle class started imitating high-society weddings in an attempt to establish its status around the 1920s

Marshall Field's, a retailer based out of Chicago, published the first bridal registry in 1924. Brides magazine—which was geared to women creating elaborate wedding celebrations—debuted in 1934. This article dives into more of the wedding-industrial complex's history.

The NFL held its first draft of college players in 1936

The NFL draft is a three-day spectacle with wall-to-wall media coverage and months of speculation about who will go to number one. But it wasn't always like that. The early days of the draft were done on a chalkboard and created a need for professional scouting departments.

The Walt Disney Co. has existed for over 100 years

October 16, 2023, marked the 100th anniversary of The Walt Disney Co. In that time, it has evolved from a modest animation studio called the Disney Brothers Cartoon Studio to a massive, billion-dollar conglomerate.

The Big Ten is the oldest Division I collegiate athletic conference in the US

Established in 1896 with seven members, the Big Ten has expanded far beyond its Midwestern roots. As of 2024, it includes 18 schools—stretching coast to coast from Rutgers in New Jersey to UCLA in California.

Billboard began as an advertising industry magazine

The magazine was initially “devoted to the interests of advertisers, poster printers, bill posters, advertising agents & secretaries of fairs.” While it occasionally tracked music via sheet music, record, and jukebox sales through the 1930s, it added its first true top 10 singles chart in 1940.

A century of Billboard issues documenting the evolution of popular music.

Sears sold DIY house kits starting at $600 in its famous catalog from 1908 through the 1940s, resulting in roughly 10,000 'Sears and Roebuck houses' being built.

Meet the 56 signers of the Declaration of Independence—most of whom didn't put pen to paper until August 2, 1776—and see their original signatures.

An initial public offering or 'IPO' is the process of a private company becoming public by putting shares of the company on the stock market for purchase.

At the beginning of the 20th century, a group of young men ate standard American food—replete with food additives like borax and formaldehyde—as part of government research to better understand food safety.

Jimmy Carter signed a 1978 bill that legalized home brewing, a move credited with kick-starting the craft beer industry.

Warren Buffett's former professor Benjamin Graham is known as the 'father of value investing,' a strategy in which investors seek to buy stocks trading below their intrinsic worth.

The word 'jazz' evolved from 'jasm,' 19th-century American slang for 'energy'

Walt Disney's early film 'Alice's Wonderland' was a groundbreaking innovation in the silent film era

A researcher recently discovered an interview from 1967 between groundbreaking journalist Joan Didion and the Grateful Dead, years before the band became an institution.

The American Society of Civil Engineers' infrastructure report card gave the US a C in 2025, its highest grade since the project launched in 1998.

'Saturday Night Fever,' the 1977 film that introduced disco to the mainstream, was based on a fabricated magazine story.

Long before Major League Baseball began allowing instant replay for balls and strikes, an umpire reluctantly used the technology to determine whether a hit was a home run, a move that inadvertently ushered in a new era for the sport.

See a ranking of the best (and worst) Federal Reserve Chairs since 1914 out of the 16 men and women who have held the office since.

Domino's Pizza's 30-minute delivery guarantee was responsible for the chain's 1980s surge, but it was discontinued after the company was found liable for delivery driver accidents.

View the ten deadliest tornadoes in US history.

Legendary architect Frank Lloyd Wright designed the SC Johnson headquarters in Wisconsin, aiming to make a cathedral-like workplace

The most expensive ad of all time was for Chanel No. 5 perfume and cost roughly $33M to produce in 2004—about $57M in today's dollars.

Sony set the standard for cylinder-shaped batteries when it repurposed manufacturing equipment used to make rolls of magnetic recording tape.

The term 'algorithm' originated from the Latinized name of al-Khwārizmī, a 9th-century mathematician whose works introduced Arabic numerals and the decimal-based numeral system to Europe and whose treatise 'Al-Jabr' gave algebra its name.

Crows are believed to have intelligence on par with a seven-year-old child and demonstrate complex behaviors, from problem-solving with tools to recognizing human faces.

Explore chaos in this simulation of two double pendulums, where small differences in the release angles produce wildly different outcomes.