The Dow Jones Industrial Average (DJIA), often called "the Dow," is a stock market index that tracks 30 prominent, blue-chip companies listed on U.S. stock exchanges. Created in 1896 by Charles Dow, co-founder of The Wall Street Journal, it is one of the oldest and most widely followed equity indices, serving as a key barometer of the U.S. economy and investor confidence. Unlike indices such as the Nasdaq Composite or S&P 500, the DJIA is price-weighted, meaning that stocks with higher prices have a greater influence on the index's value. The index covers all industries except transportation and utilities.
The DJIA's composition is determined by a committee at S&P Dow Jones Indices, and it is designed to be representative of the U.S. business landscape. The index has evolved since its creation, with changes to its component companies occurring 59 times since its inception. The value of the DJIA is calculated by summing the stock prices of its components and dividing by a divisor, which is adjusted to account for stock splits and other corporate actions. As of November 2025, the divisor was approximately 0.162. The average return for the Dow Jones is 8.70% from its beginning in 1898 through March 2022.
