The Dow Jones Industrial Average (DJIA) is reported to have set a new all-time record. For the first time in its history, the index has exceeded the 22K threshold.
For those of you who don’t know, the Dow Jones Industrial Average is one of the oldest and most significant indexes indicating the health of the American stock market. It was created by Charles Dow and Edward Jones. In 1889, Mr. Dow founded The Wall Street Journal, one of America’s first business editions. In 1896, The WSJ published the DJIA for the first time when analyzing the current state of the U.S. stock market for the first time. Back then, the DJIA was at 40,94 points, NordFX experts report.
So, The Wall Street Journal has been calculating and publishing the index ever since. These days, The Wall Street Journal analyzes America’s 30 biggest corporations, which belong to various economic sectors. It includes such famous brands as Apple, Boeing, Coca-Cola, Exxon Mobil, Goldman Sachs, McDonald’s, Microsoft, Nike, Procter & Gamble, Visa, Walt Disney, and others.
Many of the international experts out there criticize the index for being based on such a short list of companies. That’s why the DJIA often considered together with another major U.S. stock index, which is S&P 500. As you might have guessed, this index is based on a much longer list of companies – 500 companies, to be more exact.
It’s interesting to note that despite the criticism and skepticism coming from the big American business towards Donald Trump’s economic promises, since early 2017, the DJIA has already conquered 3 historical thresholds – 20K in January, 21K in March, and finally 22K on August 2nd, 2017.
The latest rally is believed to have been driven by Apple, since the corporation’s stock gained 4,73% just before the DJIA’s rally to the new all-time high. By the way, Apple’s stock also reached a new all-time high on that very day, due to successful iPhone sales in the second quarter of the year.
