Historically, markets tend to rise as the economy expands, and the Dow is no exception. Past performance is never a guarantee of future returns, but crossing the bull market threshold has historically been a good sign for stocks. The largest single-day drop, percentage-wise, that the Dow has had occurred when the market crashed on Oct. 19, 1987, Black Monday. The longest bull market in history lasted about 11 years, starting in March 2009 and ending in February 2020. This article is a summary of the closing milestones of the Dow Jones Industrial Average, a United States stock market index.
But both could be long-term winners as more businesses seek productivity gains through automation. By the end of https://www.currency-trading.org/ 2023, the previous high, registered in January 2022, had been surpassed, and the 37,000 mark had been breached.
A secular bull market is a period in which the stock market index is continually reaching all-time highs with only brief periods of correction, as during the 1990s, and can last upwards of 15 years. A cyclical bull market is a period in which the stock market index is reaching 52-week or multi-year highs and may briefly peak at all-time highs before a rapid decline, as in the early 1970s. It usually occurs within relatively longer bear markets and lasts about three years. 5This was the Dow’s close at the peak of the 1920s bull market on Tuesday, September 3, 1929 before the stock market crash. This level would not be seen again until Tuesday, November 23, 1954, more than 25 years later.
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The bout of inflation that followed the COVID-19 pandemic led to another sharp sell-off in 2022. Between Jan. 7, 2022, and Sept. 30, 2022, the Dow declined from 36,231.66 to 28,725.51. In the autumn, it began to consistently close above 35,000 points, and by the last week in December 2021, it surpassed 36,000 points. Uncertainty had been hanging over the markets because of the unprecedented refusal of then-President Donald Trump to concede the election to President-elect Biden. When Trump began the transition process late on Nov. 23, 2020, stocks came roaring back. Many records were set in 2019, thanks in part to trade talks with China that boosted firms in the index.
The following are some milestones achieved by the Dow Jones Industrial Average. In parentheses, when helpful, we provide the Dow’s points as inflation-adjusted to Feb. 23, 2024, for a relative comparing to its record high. The following is a list of the record closes of the Dow Jones Industrial Average grouped by year since May 26, 1896. 14This was the Dow’s close at the peak on January 14, 2000 before the dot-com crash.
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Since the Dow tracks just 30 large-cap U.S. companies, some critics argue that it is too narrow to represent the state of the overall U.S. economy. Given its large-cap focus, the roster of companies included in the Dow fails to include companies of other sizes. Most market observers think the S&P 500 is a much better representation of the economy, as it includes 500 companies and draws more https://www.investorynews.com/ widely from different sectors. 22This was the fastest 1,000 point gain taking only 5 trading days from closing above 32,000 to close above 33,000. 15This was the Dow’s close at the peak on October 9, 2007 before the financial crisis of 2007–2008. After the end of the second World War, the Dow started another recovery that ultimately led to the all-time closing high set back in 1929.
- A secular bull market is a period in which the stock market index is continually reaching all-time highs with only brief periods of correction, as during the 1990s, and can last upwards of 15 years.
- Previously, the Dow had fallen from 11,723 in January 2000 to 9,389 in March 2001, dropping 20% (from 20,520 to 16,434 points, inflation-adjusted).
- The market fell more than 50% in just a year and a half because of subprime mortgage and credit crisis that kicked off the Great Recession.
- Many records were set in 2019, thanks in part to trade talks with China that boosted firms in the index.
- Between Jan. 7, 2022, and Sept. 30, 2022, the Dow declined from 36,231.66 to 28,725.51.
Like most other stock market indices, the Dow undergoes periods of general increase and general declines or stagnation. A bull market is a term denoting a period of price increases, while a bear market denotes a period of declines. Wall Street generally considers a bear market in session when multiple broad market indices have a downturn of 20% or more in value lasting for at least 2 months. A bull market, or a bull run, is an extended period of rising stock prices. A bull market is the inverse of a bear market, which is a downward trending stock market.
A Brief History of the Dow
References to any securities or digital assets are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. The Dow ends a long bull market on Jan. 14, 2000, in part due to the strength of the Internet business and the subsequent bursting of the dot-com bubble. But it then falls on March 7, 2000, rebounds to 11,124.83 on April 25, and falls again to 9,973.46 by March 14, 2001, beginning the 2001 recession. It then enters a period of volatility and drops to 8,920.70 after markets open following the September 11, 2001 terrorist attacks. The recession ends in November 2002 after a period of uncertainty about war. The Dow’s largest percentage drop in history happened when the market crashed on October 19, 1987—on what is now known as Black Monday—and the Dow lost 22.6% in a single day.
Largest single-day point drop
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The Dow posted its all-time high during intraday trading on Feb. 23, 2024, reaching a peak of 39,282.28 points. The highest close occurred the same day when the index closed at 39,131.53 points. The peak was led in part by a relaxation of concerns that the Federal Reserve would keep interest rates high because of inflation, thus dampening economic activity.
