The Dow is also known as the Dow Jones Industrial Average and got its name from Charles Dow and his business partner Edward Jones. The idea behind the index was that it was a way to track U.S. market performance. The Dow is the oldest index having being first published in 1896, and consists of 30 of the largest publicly traded companies on the New York Stock Exchange. Traders will now pay attention to this index than before as it tends to provide an accurate indication of the overall market health.
Examples of prominent Dow Jones stocks include Apple, American Express, Coca Cola, Johnson & Johnson, Microsoft, and Nike. The companies which form the index have changed over time to reflect the countries changing economy. When it was first launched it only consisted of 12 companies, and these were companies specialising in raw materials such as coal and iron. The Dow expanded to stocks at a later date and remains that way today.
The US30 is perfect if you wanted to gain exposure to the top 30 U.S. stocks without actually investing in the individual companies. The US30 index CFD is an easy way to do so. This is also great if you do not want to open a U.S. brokerage account.
US30 Historical data
The 2010 'Flash Crash': On May the 6th, both the Nasdaq and Dow crashed and then rebounded after 36 minutes. This was a $1 trillion dollar stock market crash, the Dow in particular plunged by 9% within a matter of minutes. It was classed as the second-largest intraday point swings at that point by 1,010.14. Since then the 'Flash Crash' was known to be one of the most turbulent events to hit the stock market. As many traders lost and went beyond their margin capability, regulations were soon placed to protect investors and traders from such severe losses in the future.
However, over the past decade, the Dow has risen to over 26,000 due to low-interest rates and strong economic growth around the world, despite having started at less than 7,000 in the midst of the Global Financial Crisis
How to trade US30 with Eightcap?
With Eightcap you only need one trading account to trade CFDs on the US30 index and other asset classes around the world. In addition, Eightcap offers clients the award-winning MetaTrader 4 and 5 platforms. Both are widely regarded as the most advanced trading platforms in the world. Signing up is easy and in just a few minutes you will be ready to start your trading journey.