The Dow Jones Industrial Average crossed 50,000 points.
It’s a significant milestone for a stock market index that traces its history back to the late 19th century.
The Dow was established in 1896 by journalists Charles Dow and Edward Jones. The index initially followed 12 of the US’ most influential companies at the time, including General Electric, the American Tobacco Company and the Tennessee Coal, Iron and Railroad Company.
The Dow in 1928 expanded to include 30 companies, including Standard Oil, Sears Roebuck and Chrysler.
The Dow’s components still include 30 companies. Different companies have rotated in and out of the index since its inception to reflect the changing US economy.
McDonald’s joined the Dow in 1985, and Nvidia joined the Dow in 2024.
Since it only covers 30 companies, the Dow is not considered by Wall Street to be as robust of an index as the benchmark S&P 500 or the tech-heavy Nasdaq Composite.
But the Dow occupies a unique cultural space in the history of Wall Street and American capitalism.
People remember when the Dow crossed 1,000 for the first time ever, in 1972; when it surpassed 10,000 in 1999; and so on. The Dow’s ascent above 50,000 highlights the stock market’s continued gains over time.
Read More: In pictures: The history of the Dow and the New York Stock Exchange
