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DJIA
(Dow Jones Industrial Average)
The DJIA (Dow Jones Industrial Average) is the oldest U.S. stock index (1896), tracking 30 blue-chip stocks (e.g., Boeing, Disney) weighted by price (not market cap like S&P500). A $1 price move in any stock changes the DJIA by ~6.5 points.
Despite its narrow scope, the DJIA is a media staple for 'market performance' updates. Criticisms include its price-weighting flaw (high-priced stocks like UnitedHealth dominate) and exclusion of tech leaders (e.g., Amazon wasn't added until 2013). The NYSE and NASDAQ list most DJIA components. Unlike the NASDAQ-100, the DJIA includes industrial and financial firms, making it more cyclical. It surpassed 35,000 points in 2023.
Despite its narrow scope, the DJIA is a media staple for 'market performance' updates. Criticisms include its price-weighting flaw (high-priced stocks like UnitedHealth dominate) and exclusion of tech leaders (e.g., Amazon wasn't added until 2013). The NYSE and NASDAQ list most DJIA components. Unlike the NASDAQ-100, the DJIA includes industrial and financial firms, making it more cyclical. It surpassed 35,000 points in 2023.