Closing milestones of the Dow Jones Industrial Average Wikipedia
Traders were confident in a business-friendly Republican president. “40,000 is a great milestone, but end of the day there isn’t much difference between 39,999 and 40k,” Ryan Detrick, chief market strategist at Carson Group, said in a statement emailed Thursday. The Dow Jones industrial average finished above 40,000 for the first time on Friday afternoon, doubling where the index hit shortly after Donald Trump became the 45th president.
- As such, point moves are a way to measure the relative change in the index’s value.
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- 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.
- 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.
- The following is a list of the record closes of the Dow Jones Industrial Average grouped by year since May 26, 1896.
2005 (16 record closes)
The Dow, relying on share prices rather than market capitalization, passed 40,000 for the first time on May 16 after Walmart’s shares reached an all-time high. The index passed the threshold again the following day before reaching its all-time intraday high as trading opened the next week. Dow’s record-setting day follows inflation falling to its lowest point in a year, increasing the possibility of the Federal Reserve cutting interest rates. Consumer prices also fell month-over-month for the first time since 2020. The market responded positively to wholesale prices increasing 0.2% last month, higher than projections of 0.1%, according to FactSet. The S&P 500 index and Nasdaq have similarly peaked at record highs this year as technology stocks like Nvidia have swelled—though Nvidia is not a Dow Jones component.
22This was the fastest 1,000 point gain taking only 5 trading days from closing above 32,000 to close above 33,000. 21After peaking on February 12, 2020, why new traders should use stop loss orders 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. We’ve included a few key shocks to the stock markets along these timelines in addition to the presidents who were in office. Admittedly the steady hands of the Federal Reserve chairs during those eras likely had greater sway over the success of the markets than whoever was in the White House. 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. As such, point moves are a way to measure the relative change in the index’s value.
(11 record closes)
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By the end of 2023, the previous high, registered in January 2022, had been surpassed, and the 37,000 mark had been breached. The index reached a new all-time high on May 16, 2024, surpassing 40,000 for the first time. Our community is about connecting people through open and thoughtful conversations. We want our readers to share their views and exchange ideas and facts in a safe space. The S&P 500 and Nasdaq jumped more than 1% on the day, recovering from a largely flat performance Thursday. There are roughly two dozen different Dow Jones indexes that apply some sort of environmental, societal, and governance (ESG) screening.
A Brief History of the Dow
The records set in the fall were the first ones since the Dow reached 26,616.71 on Jan. 26, 2018. After hitting the Jan. 26 peak, the Dow went into free fall, dropping 4% the next week. On Feb. 8, it entered a market correction when it fell 1,032.89 points to 23,860.46.
Cuban Missile Crisis
The one before that came on the final trading day of 2021, when Dow closed at 36,488.63 on Dec. 29, 2021, smashing the record it set on Nov. 8, 2021. The Dow witnessed a sharp decline in the end of November over fears of inflation and the COVID-19 pandemic, before resuming its quest to break more all-time high milestones. This was the Dow’s third consecutive trading day with a record Profitable gold trading strategy close and the fourth record closing in just two months. The previous high was recorded just a day prior, when the index ended the trading day at 36,585.06. 10This was the Dow’s close at the peak of August 25, 1987 before the Black Monday stock market crash. As of June 2021,[update] Goldman Sachs and UnitedHealth Group are among the highest-priced stocks in the average and therefore have the greatest influence on it.
Before that, it took more than 24 years for the index to double from 625 in the spring of 1959 to September 1983. These big, round numbers don’t mean much, but they do serve as a reminder that over time stock investments can pay off. The S&P 500 has returned about 10.6% annually for the past 100 years, according to analysis from Trade That Swing. We’ve built a beautiful suite of investing products aimed at growing your wealth.
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. Shares of Intel, IBM and Home Depot helped drive the record-setting rally. 14This was the Dow’s close at the peak on January 15, 2004 before the dot-com crash. 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. The following is a list of the milestone closing levels of the Dow Jones Industrial Average.
The most recent all-time-high record (as of this writing) was on Jan. 4, 2022, when it closed at 36,799.65. But the historic peak was delayed by strong economic news, an upturn in March inflation data and statements from Fed officials suggesting interest-rate cuts wouldn’t be coming soon. The major stock indexes kicked off the year with sluggish performance but began to turn upward in the middle of last week.
List of 1,000-point milestones by number of trading days
Account holdings Asian stock futures and other information provided are for illustrative purposes only and are not to be considered investment recommendations. The content on this website is for informational purposes only and does not constitute a comprehensive description of Titan’s investment advisory services. An ambitious suite of investment products aimed at growing your wealth. From active management and index investing to alternatives and individual stock/ETF trading. Since the Great Depression, 2007 to 2008 has been the most dramatic period for the DJIA. 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.
That said, when comparing the value of the DJIA over time, many financial sites, as we have done above, use an inflation-adjustment calculator such as the U.S. Bureau of Labor’s CPI since this gives the relative change over time. The recession from 1973 to 1975 also led to a falloff for the Dow, which dropped 45% from its 1,051 peak in 1973 to just under 600 in 1974 (about 7,486 and 3,871 points, respectively, inflation-adjusted).
The ten components with the largest dividend yields are commonly referred to as the Dogs of the Dow. As with all stock prices, the prices of the constituent stocks and consequently the value of the index itself are affected by the performance of the respective companies as well as macroeconomic factors. That correction was more than 16% lower than its all-time high set in May of the same year, putting the index into a correction but not a bear market. Investors worried that China’s yuan devaluation and the uncertainty over the Fed’s rate increase would push the index further downward.
The market rally in recent days could owe in part to expectations among some investors of interest rate cuts at the Federal Reserve as soon as March. Shares for most of the firms tracked by Dow rose in value on Friday, led by Intel (4.7%), IBM (2.8%) and Home Depot (2.6%), while shares for Walmart, Boeing and JPMorgan Chase fell slightly. The close was just shy of a previous record close of 40,003 set on May 17.