Closing milestones of the Dow Jones Industrial Average Wikipedia

what is the dow all time high

Journalist Charles Dow and his business partner, Edward Jones, established the Dow Jones Industrial Average in 1896 with 12 companies in the industrial sector. The number of companies included in the index increased to 20 in 1916 and then to the current number, 30, in 1928. Since its inception, the Dow has remained among the most frequently discussed and commonly tracked equities indexes. The Dow Jones Industrial Average is made up of 30 large stocks. The DJIA tracks the price movements of 30 large companies in the United States.

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  1. This content is provided for informational purposes only, and should not be relied upon as legal, business, investment, or tax advice.
  2. The chart below shows four of those closing records, as they increase by the thousand.
  3. 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.
  4. 15This was the Dow’s close at the peak on October 9, 2007 before the financial crisis of 2007–2008.
  5. Over time, there were additions and subtractions to the index that had to be accounted for, such as mergers and stock splits.

After recovering from its Great Depression level, the Dow continued to be affected by several recessionary periods and crises leading up to the 2009 downturn. The Dow was volatile in 2015 because it was based on just a few companies. Record-low interest rates allowed firms such as Apple and IBM to borrow billions to buy back shares. 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).

A brief history of the Dow Jones from 1929–2013

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. A November streak occurred after Donald Trump’s presidential win on Nov. 8. Traders were confident in a business-friendly Republican president. This high occurred only 42 trading sessions after closing above 19,000. That is the second-fastest rise in U.S. history (currently, the record is 24 sessions to go from 10,000 to 21,000 in 1999). The Dow Jones Industrial Average (the Dow) is an index of the 30 top-performing U.S. companies.

The Dow is also a price-weighted index, as opposed to being weighted by market capitalization. This means that stocks in the index with higher share prices have greater influence, regardless if they are smaller companies overall in terms of market value. This also means that stock splits can have an impact on https://www.day-trading.info/ the index, whereas they would not for a market cap-weighted index. As the economy changes over time, so does the composition of the index. A component of the Dow may be dropped when a company becomes less relevant to current trends of the economy, to be replaced by a new name that better reflects the shift.

2009 Recession

For instance, a company may be removed from the index when its market capitalization drops because of financial distress. 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. For much of the U.S. stock market’s history, the highs, lows, bull market runs, and shocking crashes have been captured best for the public and many investors by the Dow Jones Industrial Average. The Dow posted its all-time high during intraday trading on Feb. 23, 2024, reaching a peak of 39,282.28 points.

what is the dow all time high

By Jan. 20, it closed at 15,766.74, as investors panicked over plummeting oil prices, the devaluation of the yuan, and turmoil in China’s stock market. It hit two of them https://www.forexbox.info/ 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.

This stock market index, also known as the Dow or DIJA, tracks 30 large blue-chip companies on the NYSE and Nasdaq. Although the Dow isn’t as big as the S&P 500 or the Nasdaq, neither of them has been as influential or popular enough to be the subject of a Broadway musical. While stocks so far have largely ignored sequester concerns, analysts say signs the cuts are beginning to impact the economy could eventually move markets.

(29 record closes)

The blue-chip index hit an all-time intraday high of 14,286.37, spiking above its previous all-time high of 14,198.10 from October 2007. So far, the index is up nearly 9 percent in 2013, surpassing the 7.3 percent gain for all of 2012. Since the Dow tracks just 30 large-cap U.S. companies, some critics argue that it is too narrow https://www.topforexnews.org/ 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 widely from different sectors.

They believe the number of companies is too small and it neglects companies of different sizes. Many critics believe the S&P 500 is a better representation of the economy as it includes significantly more companies, 500 versus 30. 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. The Dow fell 17% in three months, from 2,864.60 on Aug. 2 to 2,365.10 on Oct. 11, 1990. The Senate reintroduced the bailout as the Troubled Asset Relief Program on Oct. 3.

Despite its limitations, however, the Dow still holds a special place in American finance. 15This was the Dow’s close at the peak on October 9, 2007 before the financial crisis of 2007–2008. 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 downturn reflected a 10-month recession, from July 1953 to May 1954, during the military demobilization following the Korean War. The Dow gained 3,472.56 points during 2013, higher than any prior year on record. Various Registered Investment Company products (“Third Party Funds”) offered by third party fund families and investment companies are made available on the platform.

22This was the fastest 1,000 point gain taking only 5 trading days from closing above 32,000 to close above 33,000. 18The Dow first traded above 19,200 during the session on Wednesday, November 30, 2016, then flirted with the same milestone the next day. 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 day;[17] however, it would take until April 17 of the next year for the Dow to finally close above 3,000. On Monday, Sept. 15, 2008, Lehman Brothers Holding, Inc. (an investment bank) declared bankruptcy.

After two and a half months worth of several attempts, the Dow finally closed above 35,000 on Friday, July 23, 2021. 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. 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. The Dow’s activity broke new records in terms of downward movement in 2009. While it wasn’t as dramatic as the Great Depression, the drop happened much more quickly.

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