Charles Dow publishes the first edition of the Dow Jones Industrial Average.

The Dow Jones Industrial Average (DJIA), often simply called “the Dow,” is one of the most well-known and oldest stock market indices in the world. It was created in 1896 by Charles Dow and originally included just 12 industrial companies, which were considered key players in the U.S. economy at the time. Today, the DJIA tracks 30 large, publicly owned U.S. companies across various industries, not just industrials. Unlike some other indices that are weighted by market capitalization (like the S&P 500), the DJIA is price-weighted, meaning stocks with higher share prices have a greater impact on the index’s movement. It serves as a barometer of overall market health and investor sentiment, although critics argue it doesn’t fully represent the broader market due to its limited number of components and unique weighting method. Still, it’s widely cited in financial news and used as a shorthand for the performance of the U.S. stock market.