Dow Jones Industrial Average Wikipedia

This was less than the 90% drop during the Great Depression. It took almost four years for the market to bottom out at that time. In early 1981, the index broke above 1,000 several times, but then retreated. After closing above 2,000 in January 1987,[43] the largest one-day percentage drop occurred on Black Monday, October 19, 1987, when the average fell 22.61%.

1. Titan’s investment advisory services are available only to residents of the United States in jurisdictions where Titan is registered.
2. By the end of 2023, the previous high, registered in January 2022, had been surpassed, and the 37,000 mark had been breached.
3. This prompted a celebration on the trading floor, complete with party hats.[54] Total gains for the decade exceeded 315%; from 2,753.20 to 11,497.12, which equates to 12.3% annually.
4. Many records were set in 2019, thanks in part to trade talks with China that boosted firms in the index.
5. 2022 started off strong with the Dow closing at 36,799.65 on Jan. 4, the fund’s highest close to date.

This was the Dow’s third consecutive trading day with a record 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. 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 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 Dow also lost 26.5% during the Cuban missile crisis of 1962.

Record Highs Set in 2017

Of the 26 records set that year, 17 occurred after the presidential election. The index’s 2016 closing high was 19,974.62, set on Dec. 20, 2016. It hit two of them in the first few weeks in January, closing above 25,000 on Jan. 4. The index breached 26,000 on Jan. 17, then continued on to set 15 closing records in the rest of 2018. On March 29, 1999, the average closed at 10,006.78, its first close above 10,000. This prompted a celebration on the trading floor, complete with party hats.[54] Total gains for the decade exceeded 315%; from 2,753.20 to 11,497.12, which equates to 12.3% annually.

These changes are not done often to ensure the index’s stability and continuity. By the end of 2023, the previous high, registered in January 2022, had been surpassed, and the 37,000 mark had been breached. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium https://www.forex-world.net/software-development/how-to-choose-the-best-architecture-for-your-web/ services. Alternatively, investors could take a more conservative approach and buy shares of the SPDR Dow Jones Industrial Average ETF (DIA -0.81%). Information provided by Titan Support is for informational and general educational purposes only and is not investment or financial advice.

What have been the Dow’s highest records since 2020?

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. 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.

What Is the Dow Jones Industrial Average (DJIA) All-Time High?

The Dow rises 19.2% during a post-war recession thanks to strong business spending, even after a decrease in government wartime spending. On Monday, Sept. 15, 2008, Lehman Brothers Holding, Inc. (an investment bank) declared bankruptcy. On Wednesday, panicky bankers withdrew $144 billion from money market funds, almost causing a collapse. The index closed above 18,000 on Dec. 23, and then closed its high for the year at 18,053.71 on Dec. 26.

Before investing in such Third Party Funds you should consult the specific supplemental information available for each product. Certain Third Party Funds that are available on Titan’s platform are interval funds. Investments in interval funds are highly speculative and subject to a lack of liquidity that is generally available in other types of investments. Actual investment return and principal value is likely to fluctuate and may depreciate in value when redeemed. Liquidity and distributions are not guaranteed, and are subject to availability at the discretion of the Third Party Fund.

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. 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.

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 the role of a java developer factors. Through much of 2022 and 2023, investors were cautious and bearish about equity markets as inflation rocketed. Then, in the last few months of 2023, investors began piling back in as hopes grew that interest rates would soon be cut and a nasty recession averted.

And for most of the U.S. stock market’s history, the Dow Jones Industrial Average has been a reliable guide for the health of the American economy, capturing the market’s highs, lows, bull market runs, and shocking crashes. On that day, it closed at 7,286.27, a 37.8% decline from its peak. No one knew if a new bull market had begun until the Dow hit a higher low on March 11, 2003, closing at 7,524.06. Stock market gains since the 2008 financial crisis were mediocre in volume. Only three days traded more than 200 million shares, a level similar to the late 1990s. The Dow started 2022 with a flourish, breaking closing records in the first two trading days of the year.

The chart below shows four of those closing records, as they increase by the thousand. 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). The value of the index can also be calculated as the sum of the stock prices of the companies included in the index, divided by a factor, which is approximately 0.153 as of February 2024[update]. The factor is changed whenever a constituent company undergoes a stock split so that the value of the index is unaffected by the stock split.

Building on that, Salesforce and Microsoft are leaning into the growing demand for artificial intelligence (AI). In fact, Morgan Stanley analyst Keith Weiss argues Microsoft in particular is the software company best positioned to monetize generative AI. But both could be long-term winners https://www.topforexnews.org/books/top-reasons-forex-traders-fail/ as more businesses seek productivity gains through automation. The Dow fell 17% in three months, from 2,864.60 on Aug. 2 to 2,365.10 on Oct. 11, 1990. Investing in the DJIA is possible via index funds as well as via derivatives such as option contracts and futures contracts.