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CNN Money: The Dow's Journey to $40K

　　　　Introduction:

　　The Dow Jones Industrial Average (DJIA) is one of the most influential indices in the world, tracking the performance of 30 leading U.S. companies on an index. It represents the value of these firms' shares and has been closely followed by investors, traders, and analysts for decades. Over time, the DJIA has seen its share price rise from around $100 per share in the early 1950s to over $40,000 today.

　　Today, we will explore how the DJIA has evolved over time, looking at some key milestones along its journey to reach this high point. We'll also discuss some of the factors that have contributed to the growth of the index, as well as any potential future directions it may take.

　　Key Milestones:

　　Throughout its history, the DJIA has experienced several major milestones. One of the earliest was in 1901 when it was launched as a way to measure the market value of 30 large corporations. At the start, the index was made up of just eight stocks - General Electric, Western Union, American Steel & Wire, Union Pacific Railroad, Standard Oil Company of New Jersey, Pullman Sleeping Car Company, Bethlehem Steel Corporation, and the Philadelphia Stock Exchange.

　　Over time, the number of included stocks increased until it reached 30 in 1928, making it the Dow Jones Industrial Average we know today. In 1929, the stock market crash caused by the Great Depression brought about significant changes to the index. Many of the largest companies were forced into bankruptcy, causing the index to drop significantly. However, the index eventually recovered, with many of the largest companies returning to profitability and contributing to its continued growth.

　　In 1994, IBM became the first company to be removed from the index, which led to a period of instability as the index struggled to maintain its status as a leading indicator of economic health. However, in recent years, the index has stabilized, with the inclusion of new companies like Apple Inc., Amazon.com, and Facebook Inc. pushing it higher.

　　Factors Contributing to Growth:

　　There are several factors that have contributed to the growth of the DJIA over the years. One of the biggest contributors has been the strength of the U.S. economy. During times of economic growth, the demand for goods and services increases, driving up the prices of stocks. Additionally, there has been a trend toward globalization, with many multinational corporations expanding their operations overseas, creating opportunities for domestic companies to grow.

　　Another factor has been the increasing importance of technology in our daily lives. With the advent of smartphones, e-commerce, and other digital technologies, the demand for certain industries has grown rapidly. Companies like Google, Microsoft, and Facebook have become giants in their respective fields, contributing to the growth of the index.

　　Future Directions:

　　As the DJIA continues to evolve, there are several possible directions it could take. One possibility is that it could continue to grow in size and influence, becoming even more closely tied to the overall health of the U.S. economy. Another possibility is that it could become less correlated with the broader stock market, reflecting instead the strengths and weaknesses of individual companies within the index.

　　Regardless of the direction it takes, one thing is clear - the DJIA remains an important indicator of the health of the U.S. economy, and will likely continue to play a central role in shaping investment decisions for years to come.