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The Dow Jones Just Hit a Record High History Says Stocks Will Do This Next. The Motley Fool

It hit a low of 41.22 in 1932 (about 908 points, inflation-adjusted). 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. The following are some milestones achieved by the Dow Jones Industrial Average. In parentheses, when helpful, we provide the Dow’s points as inflation-adjusted to Feb. 23, 2024, for a relative comparing to its record high. The US dollar also rose 1.7% against the euro and British pound to its highest level since July. Apple — which assembles many of its products in China but enjoyed key tariff exemptions during Trump’s first term — plus 500 review ticked up 0.12% on Tuesday.

The Dow Jones Just Hit an All-Time High. Here’s Why It Could Beat the Nasdaq in 2024.

Before that, it took more than 24 years for the index to double from 625 in the spring of 1959 to September 1983. The downturn reflected a 10-month recession, from July 1953 to May 1954, during the military demobilization following the Korean War. It beat its January high, rising to 9,093.24 by the close of the day.

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. While the recent decade has shown strong economic growth, leading to plenty of record highs for the Dow, there have been significant plunges as well, both over longer periods and in dramatic single-day or single-moment drops. Through much of 2022 and 2023, investors were cautious and bearish about equity markets as inflation rocketed.

• The Fed’s preferred inflation readings are likely to be in focus, while reports on durable goods orders, new home sales and weekly jobless claims are also likely to attract attention along with the minutes of the latest Fed meeting.
• The index had three nine-day runs, last occurring in 1955 (when there were four nine-day stretches).
• An open-label or nonblinded study is where both the health providers and the patients are aware of the drug or treatment being given, according to the National Cancer Institute.
• For instance, Salesforce and Microsoft have strong market positions and solid growth prospects that could unlock plenty of value for patient shareholders.
• 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.
• A bars pattern, which takes the trending price bars that preceded the pennant and repositions them from the pattern’s top trendline, projects a price target of around $118,000.

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. The first large-scale change was in 1932 when eight stocks in the Dow were replaced. The Dow continued climbing and reached a record high of 14,198.10 on October 11, 2007, a mark which was not matched until March 2013.59 It then dropped over the next year due to the 2007–2008 financial crisis. 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.

How Are Companies in the Dow Jones Industrial Average Selected?

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). When a company undergoes significant changes, such as a merger, acquisition, or substantial shifts in its business model, or when there’s a need to better represent the current state of the economic sectors, adjustments are made. These changes are not done often to ensure the index’s stability and continuity. Perhaps the most infamous trough was during the Great Depression, in beautiful native apps in record time which the Dow lost about 90% of its value over three years.

Record Highs Set in 2013

On Wednesday, panicky bankers withdrew $144 billion from money market funds, almost causing a collapse. The Dow gained 3,472.56 points during 2013, higher than any prior year on record. Previously, the Dow had fallen from 11,723 in January 2000 to 9,389 in March 2001, dropping 20% (from 20,520 to 16,434 points, inflation-adjusted).

Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, personal finance education, top-rated podcasts, and non-profit The Motley Fool Foundation. On March 29, 1999, the average closed at 10,006.78, its first close above 10,000. This prompted a celebration on the New York Stock Exchange trading floor, complete with party hats.56 Total gains for the decade exceeded 315%; from 2,753.20 to 11,497.12, which equates to 12.3% annually. 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 0.163 as of November 2024update.

Dow Jones Industrial Average (DJIA) Index Components

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. 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. 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.

Since President-elect Trump won the election, the benchmark has gained nearly 7%. The Dow Jones Industrial Average achieved a new all-time high close of 37,557.92 on Dec. 19. Despite the impressive return, the Dow is still underperforming the Nasdaq Composite and the S&P 500 year to date.

The chart below shows four of those closing records, as they increase by the thousand. 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. Investors worried that China’s yuan devaluation and the uncertainty over the Fed’s rate increase would push the index further downward. The index closed above 23,000 on Oct. 18, 2017; slightly more than a month later, it broke 24,000.

The stock is up some 80% in 2024, rising post-election alongside bitcoin—which recently flirted with the $100,000 level, though it has pulled back in recent days—and other crypto assets. Super Micro Computer (SMCI) shares surged 16% as the server maker and Nvidia partner continues to soar following the release of a plan a week ago to avoid a delisting by the Nasdaq. The stock, which had declined for several months as the company faced significant accounting issues, has more than doubled over the past six trading sessions. The stark contrast in metatrader 4 live account valuation shows that premium investors are willing to pay for growth right now.