Forex Trading

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

what is the highest the dow jones has been

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  1. On Feb. 8, it entered a market correction when it fell 1,032.89 points to 23,860.46.
  2. Investors in recent years have become accustomed to record highs for the Dow, but there have been some pronounced drops as well.
  3. The so-called Black Monday crash is caused in part by computer trading that forces sell orders when the market turns down.
  4. At recent prices, the SPDR Dow Jones Industrial Average ETF returned 473% over the last two decades, or 9.1% annually.
  5. Since the Great Depression, 2007 to 2008 has been the most dramatic period for the DJIA.

But this robust start was not indicative of extreme volatility the index would face as the year progressed. First, the conflict between Russia and Ukraine saw gas prices spike sharply. At the same time, the strength in the U.S. labor market meant extremely competitive wages driving consumer demand. Both of those factors sent inflation in the U.S. soaring to record levels not seen in over 40 years. The Dow Jones Industrial Average is one of the many gauges of stock market performance. This history of the Dow since the Great Depression demonstrates how stock market fluctuations reflect the natural stages of the business cycle.

What Are the Drawbacks of the Dow Jones Industrial Average?

It hit a low of 41.22 in 1932 (about 908 points, inflation-adjusted).

what is the highest the dow jones has been

Investors in recent years have become accustomed to record highs for the Dow, but there have been some pronounced drops as well. Still, there has never been as dramatic a fall as the Great Depression, in which the Dow lost nearly 90% of its value over just three years. As of March 2022, the Dow Jones’s all-time high at market close was 36,799.65, on Jan. 4, 2022.

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). Salesforce has been the leader in customer relationship management (CRM) software for 10 consecutive years, and the CRM market is forecast to grow by 14% annually through 2030. Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer.

Recession of 1953

The Dow’s largest percentage drop in history happened when the market crashed on October 19, 1987—on what is now known as Black Monday—and the Dow lost 22.6% in a single day. 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 in the first few weeks in January, closing above 25,000 https://www.forexbox.info/ on Jan. 4. The index breached 26,000 on Jan. 17, then continued on to set 15 closing records in the rest of 2018. The largest single-day drop, percentage-wise, that the Dow has had occurred when the market crashed on Oct. 19, 1987, Black Monday. 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.

what is the highest the dow jones has been

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. 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. A bull market, or a bull run, is an extended period of rising stock prices. A bull market is the inverse of a bear market, which is a downward trending stock market.

The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation. 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. Many records were set in 2019, thanks in part to trade talks with China that boosted firms in the index. 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.

Specifically, the Dow Jones returned about 9% annually over the past four decades, and its performance will likely be similar over the next four decades. The Dow ends 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. But 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 uncertainty about war.

A Brief History of the Dow

The chart below shows four of those closing records, as they increase by the thousand. 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). All these events created a lot of uncertainty for investors and the Dow bore the brunt of it, falling into a bear market in September 2022.

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Largest drop in one year period

You may check the background of these firms by visiting FINRA’s BrokerCheck. The Dow rises 19.2% during a recession due to strong business spending, even after wartime government spending drops. The Dow set a record high of 28,868.80 on Jan. 2 and another record a week later. After experiencing three of the biggest drops in history during the spring, it broke 30,000 on Nov. 24, and ended the year at a record high of 30,606.48.

It reached a higher level the next day, at 36,952.65, but closed below its all-time high. This stock market index, also known as the Dow or DIJA, tracks 30 large blue-chip companies on https://www.forex-world.net/ 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.

Liquidity and distributions are not guaranteed, and are subject to availability at the discretion of the Third Party Fund. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others. Please see Titan’s Legal Page for additional important information. Historically, markets tend to rise as the economy expands, and the Dow is no exception.