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

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• August 19, 2021
• Forex Trading
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The Dow responded with new highs throughout the latter part of 2019, even though trade negotiations had broken down until November. It hit a milestone on July 11, closing above 27,000, and then another on Nov. 15, closing above 28,000 (in the chart below, milestones are noted). The Dow Jones Industrial Average (the Dow) is an index of the 30 top-performing U.S. companies.

1915 (0 record closes)

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. On September 15, 2008, a wider financial crisis became evident after the Bankruptcy of Lehman Brothers along with the economic effect of record high oil prices which had reached almost $150 per barrel two months earlier. 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.

• Only three days traded more than 200 million shares, a level similar to the late 1990s.
• 15This was the Dow’s close at the peak on October 9, 2007 before the financial crisis of 2007–2008.
• 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.
• The records set in the fall were the first ones since the Dow reached 26,616.71 on Jan. 26, 2018.
• Despite the impressive return, the Dow is still underperforming the Nasdaq Composite and the S&P 500 year to date.
• Companies in the DJIA are also chosen by a committee and are balanced to try to represent the state of the overall economy.

The Dow Jones Industrial average has doubled every 8.1 years, or 2,969 days, since 1983. 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. 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.

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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 opencv introduction low of 41.22 in 1932 (about 908 points, inflation-adjusted). 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.

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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 Post-World War II Boom Market (1954–

Minutes from the Fed’s most recent policy meeting are also due out ahead of Thanksgiving. So, they are more valued for their present earnings rather than what they could make in the distant future. The tech companies in the Dow — Apple, Microsoft, Cisco Systems, International Business Machines, Intel, and Salesforce — are all proven businesses and leaders in their fields.

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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. Australia’s S&P/ASX 200 rose 0.28% to close at 8,417.6, hitting a new all-time closing high. The index also reached a new intraday high of 8,462.1 during the trading session. The S&P MidCap 400 and S&P SmallCap 600 indexes both set all-time intraday records Monday, surging 1.9% and 2.2%, respectively. In November alone, the midcap benchmark is ahead 12%, while the smallcap barometer is higher by nearly 10%, more than double the 5% gain in the S&P 500 this month.

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). Englander has taken a contrarian approach by selling Wall Street’s hottest artificial intelligence (AI) stock in favor of a premier healthcare company that’s more than 90% below its all-time high. In contrast, Hong Kong’s Hang Seng Index fell 0.3% in its last hour of trade, while mainland China’s CSI 300 was down 0.46% to close at 3,848.09. The country’s headline inflation rate fell to 1.4%, the lowest rate of inflation since March 2021.

The index’s 2016 closing high was 19,974.62, set on Dec. 20, 2016. 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. 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.

Consumer prices rose 3.4% from last April – a decline from March’s 3.5% annual increase. The CME FedWatch Tool shows investors still expect the Federal Reserve to cut interest rates twice by the end of the year. In early 1981, the index broke above 1,000 several times, but then retreated. After closing above 2,000 in January 1987,44 the largest one-day percentage drop occurred on Black Monday, October 19, 1987, when the average fell 22.61%.

However, Monday, review stress test: reflections on financial crises December 5, 2016 was when the Dow first closed above 19,200. Critics also believe that factoring only the price of a stock in the calculation does not accurately reflect a company, as much as considering a company’s market cap would. The easiest way to invest in the Dow may be to buy shares in State Street Global Advisors’ SPDR Dow Jones Industrial Average ETF Trust, which trades under the ticker symbol DIA. The Dow suffered a market correction between August 2015 and April 19, 2016, leading to a 2016 downturn. It began on Jan. 4, when the Dow closed 160 points lower as investors worried about a slowdown in China’s economic growth.

The Dow fell 17% in three months, from 2,864.60 on Aug. 2 to 2,365.10 on Oct. 11, 1990. trading212 broker On Aug. 17, 1998, Russia devalued the ruble and defaulted on its bonds. By Aug. 31, the Dow had fallen 13%, from 8,714.64 on Aug. 18 to 7,539.06 on Aug. 31.

The DJIA tracks the price movements of 30 large companies in the U.S.. The selected companies are from all major U.S. sectors, except utilities and transportation. Many critics argue that the Dow doesn’t truly represent the state of the whole U.S. economy, given that it consists only of 30 large-cap U.S. companies. They believe the number of companies is too small and argue it neglects companies of different sizes. Many critics believe the S&P 500 better represents the economy as it includes significantly more companies.