The Dow Is Doing Better Than Peers. This Stodgy Index Still Has Problems. 

The Dow Jones Industrial Average’s shortcomings have been its saving grace this year, but investors and analysts are wondering how long the good times can last. 

The blue-chip index has declined 8% this year, with a chunk of those losses coming Thursday after shares of UnitedHealth Group sharply dropped. In comparison, the S&P 500 and the Nasdaq Composite, which are mostly composed of large technology companies and other growth stocks, are down 10% and 16%, respectively. 

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Relentless back and forth on tariffs by President Donald Trump has sown seeds of confusion among investors, simultaneously dragging down stocks and bonds. Economists are worried that tariffs could raise inflation and weigh on consumer spending, while corporate executives are scrambling to dissect the fallout on supply chains. 

Despite the broader market rout, the Dow has emerged as a relative bright spot, marking a reversal of fortunes for the 128-year-old index that has been criticized in recent decades for its lateness in identifying super cycles, its stodgy holdings, and its weighting method. 

The reason why the Dow hasn’t declined as sharply as its peers is because the stock market carnage has been led by the darling Big Tech. Since they’ve powered the market higher in recent years, th...
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