What the Stock Market Was Worth the Year You Were Born
The Dow Jones Industrial Average reached its all-time high of 26,616.71 on Jan. 26. Driving the market’s surge over the decade have been a strengthening economy, rising corporate profits, and a massive tax cut signed into law late last year.
The Dow has been building on its 25% gain in 2017, its best year since 2013. It took 14 years for the index to rise from 10,000 to 15,000 but just three and a half to reach 20,000 in 2017.
Since late January, the closely watched stock market gauge has given back all of its gains this year as investors are concerned about President Donald Trump’s tariff announcement and the possibility the Federal Reserve will continue to hike rates to curb inflation.
The DJIA is a price-weighted average of 30 large American companies. Fluctuations in the Dow often reflect overall market conditions. The index currently contains companies such as the world’s largest retailer Walmart, media juggernaut Disney, global financial institution J.P. Morgan, aerospace and defense giant Boeing, and the newest member as of 2015, tech behemoth Apple. The only company remaining from the original list of 12 is industrial conglomerate General Electric.
The companies comprising the Dow change over time to reflect the changing economy. Since the creator of the index, Charles Dow, was also the founding editor of The Wall Street Journal, editors at the publication select the companies that comprise the index. Since its inception in 1896, when only 12 companies comprised the average, the Dow has changed 51 times.
The companies currently listed in the Dow are: 3M, American Express, Apple, Boeing, Caterpillar, Chevron, Cisco, Coca-Cola, Disney, DowDuPont Inc, Exxon Mobil, General Electric, Goldman Sachs, Home Depot, IBM, Intel, Johnson & Johnson, JPMorgan Chase, McDonald’s, Merck, Microsoft, Nike, Pfizer, Procter & Gamble, Travelers Companies Inc, United Technologies, UnitedHealth, Verizon, Visa, Wal-Mart,
24/7 Wall St. determined the value of the Dow Jones Industrial Average each year since 1929.