Dow Jones by Year: An Expansive Historical Overview

1884:

The Dow Jones Industrial Average (DJIA) is founded by Charles Dow and Edward Jones. It initially comprises 11 companies: American Cotton Oil, American Sugar, Atchison, Topeka & Santa Fe Railway, Chicago Gas, Distilling & Cattle Feeding, General Electric, Laclede Gas Light, National Lead, North American, Tennessee Coal, Iron & Railroad, and U.S. Rubber.

1896:

The DJIA expands to 12 companies with the addition of American Tobacco.

1916:

The DJIA hits 100 for the first time.

1929:

The DJIA reaches a record high of 381.17 on September 3. However, it plunges on October 24, known as Black Thursday, and sets off the stock market crash of 1929, which triggers the Great Depression.

1932:

The DJIA falls below 50 for the first time since its inception.

1943:

The DJIA breaks the 200 barrier for the first time.

1954:

The DJIA surpasses 400 for the first time.

1966:

The DJIA tops 1,000 for the first time.

1972:

The DJIA hits 1,100 for the first time.

1982:

The DJIA rallies above 1,200 for the first time.

1987:

The DJIA plummets by over 22% on October 19, known as Black Monday, marking the largest one-day percentage decline in the index's history.

1990:

The DJIA crosses 3,000 for the first time.

1995:

The DJIA breaks the 5,000 barrier for the first time.

1999:

The DJIA closes above 10,000 for the first time, driven by the late 1990s technology boom.

2000:

The DJIA reaches a record high of 11,722.98 on January 14, marking the height of the dot-com bubble.

2001:

The DJIA falls below 10,000 on September 21, as the dot-com bubble bursts and the 9/11 attacks roil the market.

2003:

The DJIA re-tops 10,000 for the first time since the bursting of the dot-com bubble.

2007:

The DJIA reaches a record high of 14,164.53 on October 9, buoyed by the housing market boom and subsequent subprime mortgage crisis.

2008:

The DJIA plunges by over 30% during the financial crisis of 2008, its worst annual performance since the Great Depression.

2009:

The DJIA falls below 7,000 for the first time since 1996.

2013:

The DJIA breaks the 16,000 barrier for the first time.

2015:

The DJIA surpasses 18,000 for the first time.

2017:

The DJIA rallies above 20,000 for the first time.

2018:

The DJIA falls by over 20%, its worst annual performance since 2008.

2019:

The DJIA re-tops 26,000 for the first time.

2020:

The DJIA plunges by over 30% during the COVID-19 pandemic, but recovers to end the year at a record high.

2021:

The DJIA rallies by over 20%, its best annual performance since 1995.

2022:

The DJIA falls by over 9%, its worst annual performance since 2018.

Key Trends and Drivers:

Over its long history, the DJIA has been influenced by numerous economic, political, and social factors, including:

• Economic growth: The overall health of the U.S. economy is one of the primary drivers of the DJIA.
• Interest rates: Changes in interest rates set by the Federal Reserve can impact earnings and stock valuations.
• Inflation: Rising prices can erode the value of corporate earnings.
• Political events: Wars, elections, and other political events can lead to market volatility.
• Technological advancements: Innovation and new technologies have played a major role in shaping the DJIA's composition and performance.
• Global economy: Developments in the global economy can impact the profits of multinational corporations.

Historical Performance:

The following table summarizes the historical performance of the DJIA:

Conclusion:

The Dow Jones Industrial Average is one of the world's oldest and most widely-followed stock market indices. Its historical performance has been marked by both periods of growth and volatility. As the U.S. economy and global markets evolve, the DJIA is likely to continue to be a barometer of investor sentiment and economic health.