Dow

The Dow Index, formally known as the Dow Jones Industrial Average (DJIA), is one of the oldest and most widely recognised stock market indices in the world. It tracks the performance of 30 large, well-established US companies and is often used as a barometer of the overall health of the US economy.

Even though broader indices like the S&P 500 have gained popularity, the Dow remains a symbolic and influential benchmark followed by investors, analysts, and media globally.

What is the Dow Index?

The Dow Index refers to the Dow Jones Industrial Average (DJIA), which measures the performance of 30 large, publicly traded US companies listed on major exchanges such as the New York Stock Exchange (NYSE) and Nasdaq.

The index is:

• Maintained by S&P Dow Jones Indices
• Considered a blue-chip index
• Widely quoted as an indicator of US market performance
• Despite covering only 30 companies, the Dow includes some of the most influential corporations in the world.

History of the Dow Jones Industrial Average

The Dow Jones Industrial Average was created in 1896 by Charles Dow and Edward Jones. Initially, it included just 12 companies, mostly from the industrial sector hence the name “Industrial Average.”

Over time:

• The index expanded to 30 companies

• Its sector representation broadened beyond manufacturing

• It became one of the most followed stock market indicators globally

The Dow has witnessed major economic milestones, including the Great Depression, dot-com bubble, global financial crisis, and post-pandemic recovery.