Nasdaq Correction: Was It a Mistake to Add Nvidia, Amazon, and Salesforce to The Dow Jones Industrial Average?
The Dow Jones Industrial Average (DJINDICES: ^DJI) has changed a lot in recent years. In 2020, Salesforce, Amgen, and Honeywell International replaced ExxonMobil, Pfizer, and RTX, respectively, and in February 2024, Amazon replaced Walgreens Boots Alliance. Last November, Nvidia booted out Intel, and Sherwin-Williams replaced chemical company Dow.Adding many tech-focused companies has shifted the balance of the Dow toward growth and away from value and income. Many growth stocks are selling off this year, and investors may be wondering if it was a good idea to revamp the Dow.After all, the Nasdaq Composite (NASDAQINDEX: ^IXIC) is in a correction -- which is a drawdown of at least 10% from a recent high. Tech-focused Dow stocks -- like Nvidia, Amazon, and Salesforce -- have been selling off, too.Continue reading
The Dow Jones Industrial Average (DJINDICES: ^DJI) has changed a lot in recent years. In 2020, Salesforce, Amgen, and Honeywell International replaced ExxonMobil, Pfizer, and RTX, respectively, and in February 2024, Amazon replaced Walgreens Boots Alliance. Last November, Nvidia booted out Intel, and Sherwin-Williams replaced chemical company Dow.
Adding many tech-focused companies has shifted the balance of the Dow toward growth and away from value and income. Many growth stocks are selling off this year, and investors may be wondering if it was a good idea to revamp the Dow.
After all, the Nasdaq Composite (NASDAQINDEX: ^IXIC) is in a correction -- which is a drawdown of at least 10% from a recent high. Tech-focused Dow stocks -- like Nvidia, Amazon, and Salesforce -- have been selling off, too.
