March Madness and the DJIA – Winners & Losers

38 minutes ago3 min read

Relying Solely on Past Performance to Predict the Future Is a Risky Strategy

At Dominion Wealth Management, we understand that the stock market is full of surprises. Investors, economists, and financial advisors closely monitor the Dow Jones Industrial Average (DJIA), often referred to simply as the Dow, as a key indicator of market trends and economic health. But what does the DJIA truly represent, and can past performance offer any real insight into the future?

A Brief History of the Dow Jones Industrial Average

The DJIA is one of the most widely recognized stock market indexes, used to measure the performance of 30 major American companies. Created in 1896 by Charles Dow, co-founder of Dow Jones & Company and The Wall Street Journal, the index has long served as a benchmark for the U.S. economy.

Originally consisting of 12 stocks—including companies like American Cotton Oil and U.S. Leather—the index expanded to 20 stocks in 1920 and reached its current 30-company composition in 1929. The Dow undergoes occasional updates to reflect shifts in the economy. One such change occurred in November 2024 when Nvidia replaced Intel, emphasizing the growing influence of artificial intelligence and semiconductor technology.

Key Milestones in the Dow’s History

The Dow’s history is marked by significant milestones that highlight its long-term growth:

Surpassed 1,000 for the first time in 1972
Hit 10,000 in March 1999
Reached 17,000 in July 2014
Climbed past 25,000 in January 2018
Closed at 32,953 on March 15, 2021
Crossed the 40,000 threshold in January 2025, closing at 42,392.27 on January 2, 2025

2024 Performance: Winners & Losers

The DJIA posted a solid 13% gain in 2024—a respectable return, though it lagged behind the S&P 500’s 23% increase. However, the real story lies in the individual stock performances that shaped the index.

Top 5 Performers in 2024

Nvidia (NVDA) – A staggering 171% increase, driven by its leadership in AI-driven semiconductor technology.
Walmart (WMT) – A 72% rise, fueled by its expansion into technology-driven retail solutions and competitive pricing.
Amazon (AMZN) – After joining the DJIA in February 2024, Amazon’s stock surged 44%, thanks to its cloud computing and AI innovations.
Goldman Sachs (GS) – A 48% gain, reflecting growth in asset management and investment banking.
American Express (AXP) – Stock rose 59%, benefiting from increased consumer spending and a robust economy.

Bottom 5 Performers in 2024

Boeing (BA) – Dropped 32%, struggling with production delays, supply chain disruptions, and labor strikes.
Intel (INTC) – Declined 60%, losing ground to competitors in the AI-driven semiconductor race.
Nike (NKE) – Fell 28%, hindered by leadership challenges, declining sales, and increased competition.
Walgreens Boots Alliance (WBA) – Plunged over 63%, facing ongoing struggles in retail and underwhelming earnings reports.
Dow Inc. (DOW) – Down 27%, leading to its removal from the DJIA in favor of Sherwin-Williams.

These results underscore how rapidly market conditions can shift, rewarding some companies while punishing others.

Can You Predict the Next Winner?

Did you anticipate Nvidia’s meteoric rise? Or Boeing’s dramatic decline? If history has shown us anything, it’s that market predictions are far from an exact science. Consider Boeing—once the best-performing Dow stock in 2018, soaring 89% that year, even outperforming Apple.

At Dominion Wealth Management, we know that every company experiences ups and downs. Relying solely on past performance to guide future investments is a risky approach. That’s why we focus on diversification, strategic planning, and long-term wealth management to help our clients navigate market fluctuations with confidence.

Plan for the Future with Confidence

While the market can be unpredictable, your financial strategy doesn’t have to be. At Dominion Wealth Management, we specialize in personalized investment planning that aligns with your goals, risk tolerance, and long-term financial vision. Contact our office today to schedule an appointment, and let’s build a financial strategy that keeps you on the path to success—no matter what the market brings next.