Between January and June 2023, the DJIA soared by 1,260 points or 3%. The first half of this year was spectacular for the stock market as big tech roared to life and soared to new highs due to the hype surrounding artificial intelligence. It closed the year at 33,147, to mark an 8.7% drop which was still digestible compared to the 21% drop at the September trough.įast forward to 2023 and the index represents a different picture. 2022, which was quite a rattling time to be investing in the stock market saw the DJIA tank from its 2021 close of 36,338 to a bottom of 28,725 in September at what was the peak of the Federal Reserve's rate hike frenzy. The DJIA, like the broader stock market, has been rattled by global geopolitical conflicts as well as the rapid interest rate hikes by the Federal Reserve to curtail inflation.

If you're interested to learn more about the history of the DJIA blue chip stock index, you should check out 12 Undervalued Blue Chip Stocks To Buy According to Wall Street Analysts. However, on the flip side, the DJIA also offers stability to investors as its constituents are a stable set of companies with sizeable balance sheets and stable markets that serve them well during turbulent economic times. In terms of returns, the blue chip segment often lags behind the high growth NASDAQ 100 and NASDAQ Composite since they are comprised of a large number of high growth technology firms. These chips are the most valuable in the stock market according to the DJIA's creators, and along with the NASDAQ Composite and the S&P 500, the index is one of the most closely watched stock indexes in America. Informally, the DJIA is also referred to as a blue chip stock index - a term that is borrowed from poker chips. (NASDAQ:AAPL) and Microsoft Corporation (NASDAQ:MSFT).

Naturally given the central role that information technology plays in today's world, the biggest companies part of the DJIA are Apple Inc. (NYSE:SPGI) believes are an adequate representation of the U.S. The stock index is constituted of firms that the S&P Global Inc. It has been around in one form or the other for more than a hundred years, and over the course of this long history, the index is periodically re balanced. Within the American stock market, the Dow Jones Industrial Average (DJIA) is one of the most prestigious stock indexes. To skip our overview of the blue chip sector and the latest news about the stock market, take a look at the 5 Cheap Blue Chip Stocks To Buy. In this piece, we will take a look at the 13 cheap blue chip stocks to buy.

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