# Dow Jones Industrial Average

### Bull market of 2009–present

Towards the latter half of 2009, the average rallied towards the 10,000 level amid optimism that the Late-2000s (decade) Recession, the United States Housing Bubble and the Global Financial Crisis of 2008–2009, were easing and possibly coming to an end. For the decade, the Dow saw a rather substantial pullback for a negative return from the 11,497 level to 10,428, a loss of a little over 9%.

The DJIA from January 2000 through February 2015.

During the early part of the 2010s, aided somewhat by the loose monetary policy practiced by the Federal Reserve, the Dow made a notable rally attempt, though with significant volatility due to growing global concerns such as the 2010 European sovereign debt crisis, the Dubai debt crisis, and the United States debt ceiling crisis. On May 6, 2010, the index lost around 400 points over the day, then just after 2:30 pm EDT, it lost about 600 points in just a few minutes, and gained the last amount back about as quickly. The intra-day change at the lowest point was 998.50 points, the largest intra-day point decline ever, representing an intra-day loss of 9.2%. The event, during which the Dow bottomed out at 9,869 before recovering to end with a 3.2% daily loss at 10,520.32, became known as the 2010 Flash Crash.[26] The index closed the half-year at 9,774.02 for a loss of 7.7%.[27]

On May 3, 2013, the Dow surpassed the 15,000 mark for the first time, while later on November 18, it closed above the 16,000 level.[28] Following a strong jobs report on July 3, 2014, the Dow traded above the 17,000 mark for the first time,[29] on December 23, 2014, the DJIA traded above the 18,000 boundary for the first time, after data showed the U.S. economy posted its strongest growth in more than a decade.[30] The index closed 2014 at 17,823.07 for a gain of 71% for the five years.[31]

During the summer of 2015 the Dow began to retreat from its all-time high due to overwhelming economic factors entering correction for the first time since 2011.[citation needed] By October, the Dow had exited correction rallying 14% from its August lows, but failed to hit a record high set back in May.[citation needed] In November and December, the Dow continued to retreat from the 14% rally in October, leading some to call it a bear market,[32][33] this led to the Dow closing at 17,425.03 for 2015, the first annual loss since 2008.[34] After nearly 14 months since the last record close, the Dow finally achieved a fresh new, central-bank debt fuelled record close on July 20, 2016 at 18,595.03 along with an intraday high of 18,622.01.[35]

Despite anticipations of post-election selloffs, the Dow rallied significantly after Donald Trump was elected President, on January 25, 2017, the Dow hit a record high of 20,000, an increase of 1,667 points since his election in November 2016.[36][37] On March 1, 2017, the Dow broke through the 21,000 level,[38] reaching a new all-time high, the 1,000 point gain took just 35 days being tied for the fastest time ever. The Dow hit yet another new high just 5 months later, surpassing the 22,000 level[39] on August 2, 2017.

## Investing

Investing in the DJIA is made widely accessible in equities through exchange-traded funds (ETFs) as well as in derivatives through option contracts and futures contracts.

The index is tracked by an exchange-traded fund, the SPDR Dow Jones Industrial Average (NYSE ArcaDIA), commonly called "diamonds". This fund is part of the SPDR family of ETFs from State Street Global Advisors, this fund was introduced in 1998, and it was previously called DIAMONDS Trust, Series 1.

### Options contracts

The Chicago Board Options Exchange (CBOE) issues Options Contracts on the Dow through the root symbol DJX in combination with long-term expiration options called DJX LEAPS. There are also options on the various ETFs; Performance ETFs, Inverse Performance ETFs, 2x Performance ETFs, Inverse 2x Performance ETFs, 3x Performance ETFs, and Inverse 3x Performance ETFs.

## Calculation

To calculate the DJIA, the sum of the prices of all 30 stocks is divided by a divisor, the Dow Divisor, the divisor is adjusted in case of stock splits, spinoffs or similar structural changes, to ensure that such events do not in themselves alter the numerical value of the DJIA. Early on, the initial divisor was composed of the original number of component companies; which made the DJIA at first, a simple arithmetic average. The present divisor, after many adjustments, is less than one (meaning the index is larger than the sum of the prices of the components), that is:

${\displaystyle {\text{DJIA}}={\sum p \over d}}$

where p are the prices of the component stocks and d is the Dow Divisor.

Events such as stock splits or changes in the list of the companies composing the index alter the sum of the component prices; in these cases, in order to avoid discontinuity in the index, the Dow Divisor is updated so that the quotations right before and after the event coincide:

${\displaystyle {\text{DJIA}}={\sum p_{\text{old}} \over d_{\text{old}}}={\sum p_{\text{new}} \over d_{\text{new}}}.}$