Between Jan. 7, 2022, and Sept. 30, 2022, the Dow declined from 36,231.66 to 28,725.51. Perhaps the most infamous trough was during the Great Depression, in which the Dow lost about 90% of its value over three years. It hit a low of 41.22 in 1932 (about 908 points, inflation-adjusted). Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. Alternatively, investors could take a more conservative approach and buy shares of the SPDR Dow Jones Industrial Average ETF (DIA -0.81%).
Since first closing at 62.76 on February 16, 1885,[1] the Dow Jones Industrial Average has increased, despite several periods of decline. Learn all about how the classification system that separates the stock market into 11 sectors can help investors understand the different sectors of the economy. The Dow’s most volatile period in recent history took place during the Great Recession of 2007–2008. On Oct. 9, 2007, the Dow hit a pre-recession high, closing at 14,164.53 despite growing concerns around the subprime mortgage crisis. Leading up to the Great Recession, banks had offered easy home loans to virtually everyone, including those with bad credit. Falling home prices throughout 2007 prompted defaults on subprime mortgages.
- The global stock market is composed of stock exchanges around the world.
- 21After peaking on February 12, 2020, the Dow Jones rapidly fell into correction later that same month and into bear market territory in the next month amid the COVID-19 pandemic.
- The Dow Jones Industrial Average (the Dow) is an index of the 30 top-performing U.S. companies.
- Learn more about how to invest despite the market’s dips by downloading Titan’s app today.
- Since its inception, the Dow has remained among the most frequently discussed and commonly tracked equities indexes.
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. 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. The following are some milestones achieved by https://www.forexbox.info/mastering-private-equity-set/ 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. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision.
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Learn more about how to invest despite the market’s dips by downloading Titan’s app today. The Dow sees the end of 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. 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 war-related uncertainty.
However, Monday, December 5, 2016 was when the Dow first closed above 19,200. 11The Dow reached an intraday high above 3,000 for the first time on Friday, July 13, 1990, before falling back below by the close. The average closed at 2,999.75 on Monday, July 16, 1990, and closed unchanged the following https://www.day-trading.info/bond-yields-are-rising-but-were-not-at-taper/ day;[17] however, it would take until April 17 of the next year for the Dow to finally close above 3,000. Because of the price-weighted calculation method, a $1 change in the price of a stock in the DJIA doesn’t equate to one point in the index since that depends on the Dow divisor at the time.
In addition, this content may include third-party advertisements; Titan has not reviewed such advertisements and does not endorse any advertising content contained therein. President John F. Kennedy demanded the removal of the weapons and launched a 13-day naval quarantine to prevent ships from reaching Cuba, which may have held weapons from the Soviets. On Aug. 17, 1998, Russia devalued the ruble and defaulted on its bonds.
These actions artificially raised their earnings per share and the prices of their remaining outstanding stocks (stocks which are still held by shareholders). The index had three nine-day runs, last occurring in 1955 (when there were four nine-day stretches). The Dow continuously moved higher eight months in a row (the last occurrence of this was in 1995).
After reaching an intra-day low of 40.56 on July 8, 1932, the Dow started to recover with a major setback at the start of World War II. 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 stocks enter bear market what does it mean 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 widely from different sectors. Since the Great Depression, 2007 to 2008 has been the most dramatic period for the DJIA.
Dow All-Time Highs
For instance, Salesforce and Microsoft have strong market positions and solid growth prospects that could unlock plenty of value for patient shareholders. Past performance is never a guarantee of future returns, but crossing the bull market threshold has historically been a good sign for stocks. Please refer to Titan’s Program Brochure for important additional information. Before investing, you should consider your investment objectives and any fees charged by Titan. The rate of return on investments can vary widely over time, especially for long term investments.
Record Highs Set in 2018
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. 2022 started off strong with the Dow closing at 36,799.65 on Jan. 4, the fund’s highest close to date. For starters, the Dow Jones we know is not a person — but you already knew that. Named for its two founders, the Dow Jones is a stock market index, just like the S&P 500 or the Nasdaq.
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After two and a half months worth of several attempts, the Dow finally closed above 35,000 on Friday, July 23, 2021. 13The Dow first traded above 10,000 on Tuesday, March 16, 1999, but dropped back before closing that day. The Dow closed at 9,997.62 on Thursday, March 18, 1999.[18] It would take nearly two weeks to close above 10,000 on Monday, March 29, 1999. While you can’t directly buy shares in the market index, you can invest in the DJIA through index funds and exchange-traded funds (ETFs) such as the SPDR Dow Jones Industrial Average ETF Trust (DIA). These funds track the DJIA through a similar composition and weighting of stocks. The Dow Jones Industrial Average, also known as the Dow or DJIA, tracks 30 large, well-known companies that trade on the New York Stock Exchange and Nasdaq.
Two weeks later, on Oct. 28, the Dow rises 889 points, fueled by optimism that the Federal Reserve would cut the interest rate. The Dow Jones stock market index (also known as the Dow or DIJA) tracks 30 large, blue-chip companies on the New York Stock Exchange and Nasdaq. After the Dow Jones Transportation Index, it is the second oldest U.S. stock market index still in use. Stock market gains since the 2008 financial crisis were mediocre in volume.
The current month is updated on an hourly basis with today’s latest value. The current price of the Dow Jones Industrial Average as of March 22, 2024 is 39,475.90. The largest single-day drop, percentage-wise, that the Dow has had occurred when the market crashed on Oct. 19, 1987, Black Monday. The global stock market is composed of stock exchanges around the world.
