Dow closes above 38,000 for 1st time, setting record high

The Dow Jones Industrial Average hit 10,000 for the first time in March 1999. The DJIA then hit 11,750 in January 2000, before falling to below 7,200 in October 2002 after the dot-com crash. While the 40,000 milestone is attention-grabbing, the number itself means little to investors. 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 Dow tracks 30 large, publicly owned blue-chip companies trading on the New York Stock Exchange and the Nasdaq.
• These changes are not done often to ensure the index’s stability and continuity.
• Additionally, it was slightly less volatile than the broader S&P 500, as evidenced by its 10-year beta of 0.95.
• The index’s 2016 closing high was 19,974.62, set on Dec. 20, 2016.
• The DJIA then hit 11,750 in January 2000, before falling to below 7,200 in October 2002 after the dot-com crash.

The tech-heavy Nasdaq inched up to 15,360 by the end of trading on Monday. The  Dow Jones Industrial Average hit a fresh record high Wednesday, making a run for tis 47th record close, before pulling back early afternoon. “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. 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 gained 3,472.56 points during 2013, higher than any prior year on record.

Trump flipped several swing states from President Joe Biden’s 2020 victory, and Republicans also took control of the Senate. A so-called red wave could usher in an era of deregulation and other pro-business laws and policies that investors believe could benefit the stock market. In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Tuesday.

Dow Jones Industrial Average

The market rally coincided with a consumer survey released by the University of Michigan on Friday showing that confidence soared nord fx review 13% in January, reaching its highest level since July 2021. The U.S. economy grew 2.8% in the third-quarter, based on the second preliminary estimate, while jobless claims hit 213,000 a seven-month low. Traders are eyeing potentially hotter inflation, and dialing back their bets for Fed rate cuts into next year. Companies in the DJIA are also chosen by a committee and are balanced to try to represent the state of the overall economy. This means that certain companies may be added to or deleted from the index periodically, and it’s difficult to predict when or which stock will be changed. Despite its limitations, however, the Dow still holds a special place in American finance.

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. 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.

In this manner, a company with a higher stock price but a smaller market cap would have more weight than a company with a smaller stock price but a larger market cap, which would poorly reflect the true size of a company. The DJIA launched in 1896 with just 12 companies, primarily in the industrial sector. Since then, it’s changed many times—the very first came three months after the 30-component index launched.

It hit a milestone on July 11, closing above 27,000, and then another on a review of “financial modeling” Nov. 15, closing above 28,000 (in the chart below, milestones are noted). 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. Given its large-cap focus, the roster of companies included in the Dow fails to include companies of other sizes.

Market Cap

Utilities and pharmaceutical stocks also saw considerable strength, with the Dow Jones Utility Average and the NYSE Arca Pharmaceutical Index climbing by 1.3 percent and 1.2 percent, respectively. Tesla, the electric vehicle company led by Trump-ally Elon Musk, has a manufacturing plant in Shanghai, China. Apple — which assembles many of its products in China but enjoyed key tariff exemptions during Trump’s first term — ticked up 0.12% on Tuesday.

What Is the Dow Jones Industrial Average (DJIA)?

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.

Software stocks turned in a strong performance on the day, driving the Dow Jones U.S. Software Index up by 1.4 percent to a record closing high. (RTTNews) – After turning in a mixed performance early in the session, the major U.S. stock indexes all moved to the upside over the course of the trading day on Tuesday. The Dow recovered from early weakness to end the day at another new record closing high. However, returns have varied dramatically between past bull markets, so investors would do better to benchmark against a different metric. 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 Jones Industrial Average is a stock index of 30 U.S. blue-chip large-cap companies, which has become synonymous with the American stock market as a whole.

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. The S&P 500 and Nasdaq rebounded 1.1% and 1.3% on Friday, respectively, after both indexes posted their worst trading days since late April.

Between Jan. 7, 2022, and Sept. 30, 2022, the Dow declined from 36,231.66 to 28,725.51. 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. Perhaps the most infamous trough was during the Great Depression, in which the Dow lost about 90% of its value over three years.

1982 Recession

The Dow also lost 26.5% during the Cuban missile crisis of 1962. 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. Uncertainty had been hanging over the markets because of the unprecedented refusal of then-President Donald Trump to concede the election to President-elect Biden. When Trump began the transition process late on Nov. 23, 2020, stocks came roaring back. Trump has warmed up to cryptocurrencies in recent months after broadly opposing them in his first term. In the bond market, treasuries gave back ground after soaring Best index funds 2024 in the previous session.