The Dow’s big drop on Tuesday was worsened by some of its most important stocks.
The blue-chip index fell 375 points, or 0.8%, in Tuesday trading. The S&P 500 was down 0.4%. The Nasdaq Composite was off 0.5%. The Dow’s decline was double the S&P 500’s because of how it weighs its members.
The Dow is a stock-price weighted index. That means instead of the largest companies having the most weight in the Dow like the S&P, it gives weight to larger stock prices. It’s a fairly arbitrary and anachronistic way to weigh stocks, which explains why the S&P 500 serves as a stronger market benchmark.
On Tuesday, some of the Dow’s worst-performing stocks were also ones that had stock prices north of $200. Visa, for example, shaved 106 points off the Dow with its 4.9% drop. Salesforce, down 4.5%, shaved off 70 points. JPMorgan Chase, down 2.7% after earnings, shaved off 53 points off the Dow. It was on track for its worst post-earnings performance since April 12, 2024, according to Dow Jones Market Data.
Microsoft, down 2.1%, cut 61 points off the Dow. Though Goldman Sachs Group was only down 0.9%, its stock price north of $940 meant it shaved 51 points off the Dow on Tuesday.
Though they’ve weighed on the Dow this week, the index did benefit from a rally in financials earlier in the year. Even with today’s struggles, it’s up 2.7% so far this year, while the S&P 500 is up 1.7%. The Nasdaq Composite, after beating both in 2025, is up 1.8% this year.
Among the Dow stocks down 1% or more, all have a stock price above $200. Five of them stock prices north of $300.
On the flip side, the Dow stocks on the rise include three with stock prices below $100.
