Charles Dow, co-founder of Dow Jones & Company, established the Dow Jones Industrial Average as a way to measure the performance of large companies in the U.S. stock market. On May 26, 1896, the inaugural version was published in the Wall Street Journal, consisting of 12 prominent companies primarily from the industrial sector. This was a pivotal moment in financial history as it provided a comprehensive tool for investors and analysts to gauge the market's fluctuations and overall health.

The original list included names such as General Electric, American Cotton Oil, and National Lead, which were seen as leaders in their respective fields. Dow’s approach was revolutionary; prior to this, there were no standardized measures to assess market performance accurately. By focusing on industrial companies, Dow aimed to reflect the economic changes brought about by the Second Industrial Revolution.

The creation of the DJIA marked the beginning of the modern stock market index. Investors benefited from this benchmark, which allowed them to track the performance of the economy more reliably. As the market evolved, so too did the index, which would eventually include 30 companies and become a critical reference for both institutional and retail investors globally, symbolizing economic prosperity and market health over the decades.