The current price of the Dow Jones Industrial Average as of April 25, 2024 is 38,085.80. 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.
How Often Does the Dow Jones Industrial Average Change?
Account holdings and other information provided are for illustrative purposes only and are not to be considered investment recommendations. The content on this website is for informational purposes only and does not constitute a comprehensive description of Titan’s investment advisory services. The Dow experiences its largest single-day percentage drop of 22.6% on Oct. 19,1987.
Recession of 1953
In fact, Morgan Stanley analyst Keith Weiss argues Microsoft in particular is the software company best positioned to monetize generative AI. But both could be long-term winners as more businesses seek productivity gains through automation. 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). The bout of inflation that followed the COVID-19 pandemic led to another sharp sell-off in 2022. Between Jan. 7, 2022, and Sept. 30, 2022, the Dow declined from 36,231.66 to 28,725.51. Perhaps the most infamous trough was during the Great Depression, in which the Dow lost about 90% of its value over three years.
How Are Companies in the Dow Jones Industrial Average Selected?
It hit a low of 41.22 in 1932 (about 908 points, inflation-adjusted).
Cuban Missile Crisis
But just because the stock market is volatile doesn’t mean you should shy away from investing in it. Titan helps you take advantage of both of these strategies by providing you with a diversified portfolio that enables healthy investing habits. Learn more about how to invest despite the market’s dips by downloading Titan’s questrade review app today. The Dow sees the end of 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. 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.
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. The Dow rises 19.2% during a post-war recession thanks to strong business spending, even after a decrease in government wartime spending.
The Dow Jones large-cap, mid-cap, small-cap, value, and growth indexes are constructed from the stock constituents of the Dow Jones U.S. Total Market Index. The tech-heavy Nasdaq inched up to 15,360 by the end of trading on Monday. 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 without much in the way of being able to predict when or which stock will be changed. Despite its limitations, however, the Dow still holds a special place in American finance. Companies are replaced when they no longer meet the index’s listing criteria with those that do.
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 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. The most recent all-time-high record (as of this writing) was on Jan. 4, 2022, when it closed at 36,799.65.
The Dow also lost 26.5% during the Cuban missile crisis of 1962. Many records were set in 2019, thanks in part to trade talks with China that boosted firms in the index. On one hand, it may be tempting to investors to participate in the momentum fueling the S&P to record highs. By contrast, seeing Buffett sitting on the sidelines could be a sign that he views current market dynamics differently.
On Wednesday, panicky bankers withdrew $144 billion from money market funds, almost causing a collapse. The index closed above 18,000 on Dec. 23, and then closed its high for the year at 18,053.71 on Dec. 26. 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 Nasdaq Composite index is up nearly 4% so far this year, while the S&P 500 has gained closer to 5% as of market close on April 17. Indexes react to actual trades, and while investors may trade on the expectation of good or bad news, indexes are mathematical calculations that have nothing to do with emotion. In that respect, stock indexes may be more valuable for providing a historical perspective than they are a means of forecasting future market movement. The Dow Jones U.S. Total Market Index is also known as the “Dow Jones U.S. Index.” The index includes most stocks, except the very smallest and least-liquid U.S. stocks.
Others apply S&P Global’s Corporate Sustainability Assessment to geographic regions. 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 Long-Term Capital Management hedge fund almost collapsed, threatening to push its banking investors into bankruptcy. Former Federal Reserve Chairman Alan Greenspan convinced them to support the hedge fund, averting further disaster. It beat its January high, rising to 9,093.24 by the close of the day.
- Only three days traded more than 200 million shares, a level similar to the late 1990s.
- Companies are replaced when they no longer meet the index’s listing criteria with those that do.
- It began on Jan. 4, when the Dow closed 160 points lower as investors worried about a slowdown in China’s economic growth.
- Moreover, some companies in the pharmaceutical industry have been witnessing increased buying activity thanks to breakthroughs in obesity care and diabetes medications.
- It beat its January high, rising to 9,093.24 by the close of the day.
The DJIA is the second-oldest U.S. market index after the Dow Jones Transportation Average. The DJIA was designed to serve as a proxy for the health of the broader U.S. economy. Often referred to simply as the Dow, it is one of the most-watched stock market indexes in the world. While the Dow includes a range of companies, all of them can be described as blue-chip companies with consistently stable earnings. 23The Dow first traded above 35,000 on Monday, May 10, 2021 before closing below it for the day.
After the end of the second World War, the Dow started another recovery that ultimately led to the all-time closing high set back in 1929. 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. 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. Additionally, I’d encourage investors to look for reliable dividend payers to supplement some passive income for your portfolio.
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It climbed higher the following day to 36,952.65, but eventually closed below its all-time high. Take a look at the Dow Jones Industrial Average over the course of its history and you also have a reliable history of the U.S. stock market. Its peaks and valleys shed light on the workings — and volatility — of the global economy. https://forexbroker-listing.com/hotforex/ Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. As an extremely broad index, the fund is further sliced by Dow Jones to create distinct sub-indexes that track every major segment of the market, according to stock size, sector, and others.