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WSJ ·  May 16 10:31

By Hardika Singh

The Dow Jones Industrial Average climbed above 40000 for the first time today.

It was a long road to 40000. The Dow took almost 103 years to reach 10000 in March 1999. Reaching 20000 required nearly 18 years more. Then 30000 came three years later, in 2020.

The Dow is a price-weighted measure, meaning the bigger the stock price, the larger the sway for a particular component, and vice versa. The first iteration included 12 mostly consumer goods and basic material suppliers like U.S. Leather and Tennessee Coal & Iron.

Today it includes 30 stocks. There are some newcomers: Amazon.com recently joined the Dow, succeeding Walgreens Boots Alliance. Technology companies including Microsoft and Intel were added in the 1990s, while companies such as Bethlehem Steel and Woolworth dropped out.

Stocks have generally risen alongside the Dow, which is up about 6% this year. The S&P 500 is up 11%, while the Nasdaq Composite is up 12%. All three leading indexes finished Wednesday at records.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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