Contents
- Dow Jones Industrial Average Measure
- Historical Milestones
- Limitations of the DJIA
Dow Jones Industrial Average Measure
The Dow Jones Industrial Average (DJIA) tracks the price movements of 30 large companies in the United States. similar companies include Microsoft (MSFT) and Home Depot (HD). The named companies are from all major U.S. sectors, except serviceability and transportation.
The following are some important literal mileposts achieved by the Dow
- March 15, 1933, the largest one-day chance gain in the Indexes happen during the 1930s bear request, totaling 15.34. The Dow gained 8.26 points and closed at 62.
- Oct. 19, 1987 The largest one-day chance drop took place on Black Monday. The Index fell by 22. There was no apparent explanation for the crash, although program trading may have been a contributing factor.
- Sept. 17, 2001 The fourth-largest one-day point drop — and the largest at the time — took place on the first day of trading following the9/11 attacks in New York City. The Dow dropped 684.81 points or about 7.1. still, it’s important to note that the Indexes had been dropping before Sept. 11, losing more than 1,000 points between Jan. 2 and Sept. 10. The DJIA started to make traction after the attacks and recaptured all of what it lost, closing above,000 for the time.
- On May 3, 2013, The Dow surpassed the,000 mark for the first time in history.
- Jan. 25, 2017 The Dow closed above,000 points for the first time.
- Jan. 4, 2018 The Indexes closed at, the first close 25,000 points.
- Jan. 17, 2018 The Dow closed at, the first close 26,000 points.
- Feb. 5, 2018 The Dow fell a record points.
- Dec. 26, 2018 The Dow recorded its largest one-day point gain of 1,086.25.
- On July 11, 2019, The Dow broke 27,000 for the first time in its history.
- Feb. 12, 2020 The Dow hits its pre-pandemic high of 29,551
- March 2020 the Dow Jones crashes with the back-to-reverse record down days amid the global coronavirus epidemic, breaking 20,000 and 3,000 points in a single day amid 2,000 over and 1500 down moves. It officially entered bear request home on March 11, 2020, ending the longest bull request in history that began in March 2009.
- Nov. 16, 2020 The Dow eventually breaks its pre-COVID-19 high, reaching points.
- Nov. 24, 2020 The Dow breaks the 30,000 positions for the first time, closing at 30,045.84.
- July 2021 On July 12, 2021, the Dow traded 35,000 for the first time. On July 23, 2021, it closes at 35,000 for the first time.
- November 2021 The Dow trades above $36,000 for the first time.
- Jan. 2022 The Dow hits a- time high of 36,952.65
Limitations of the DJIA Many critics of the Dow argue that it doesn’t significantly represent the state of the U.S. frugality as it consists of only 30 large-cap U.S. companies. They believe the number of companies is too small and it neglects companies of different sizes. numerous critics believe the S&P 500 is a better representation of frugality as it includes significantly further companies, 500 versus 30. likewise, critics believe that factoring only the price of a stock in the computation doesn’t directly reflect a company, as much as considering a company’s request cap would. In this manner, a company with an advanced stock price but a lower request cap would have further weight than a company with a lower stock price but a larger request cap, which would inadequately reflect the true size of a company. The Dow is also a price- gladdened Indexes, as opposed to being gladdened by request capitalization. This means that stocks in the Indexes with advanced share prices have lesser influence, anyhow if they’re lower companies overall in terms of request value. In a price- gladdened Indexes, a stock that increases from$ 110 to$ 120 will have the same net effect on the Indexes as a stock that increases from$ 10 to$ 20, indeed though the chance moves for the ultimate is far lesser than that of the advanced- priced stock. This also means that stock splits can have an impact on the Indexes, whereas they would not for a request cap- gladdened Indexes.
