The downturn reflected a 10-month recession, from July 1953 to May 1954, during the military demobilization following the Korean War. The Dow fell 17% in three months, from 2,864.60 on Aug. xtb review 2 to 2,365.10 on Oct. 11, 1990. It beat its January high, rising to 9,093.24 by the close of the day. The Senate reintroduced the bailout as the Troubled Asset Relief Program on Oct. 3.

Certain information contained in here has been obtained from third-party sources. In addition, this content may include third-party advertisements; Titan has not reviewed such advertisements and does not endorse any advertising content contained therein. Perhaps the most infamous trough was during the Great Depression, in which the Dow lost about 90% of its value over three years. It hit a low of 41.22 in 1932 (about 908 points, inflation-adjusted).

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  1. Interest rate cuts would lower borrowing costs for consumers and businesses, potentially triggering a burst of economic activity through greater household spending and company investment.
  2. After the Dow Jones Transportation Index, it is the second oldest U.S. stock market index still in use.
  3. The current month is updated on an hourly basis with today’s latest value.
  4. A secular bull market is a period in which the stock market index is continually reaching all-time highs with only brief periods of correction, as during the 1990s, and can last upwards of 15 years.
  5. The Dow responded with new highs throughout the latter part of 2019, even though trade negotiations had broken down until November.

The central bank’s latest minutes showed most officials want to tread carefully on rate cuts, seeing risks in moving too quickly. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. Alternatively, investors could take a more conservative approach and buy shares of the SPDR Dow Jones Industrial Average ETF (DIA 0.87%).

Record Highs Set in 2021

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). 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. Journalist Charles Dow and his business partner, Edward Jones, established the Dow Jones Industrial Average in 1896 with 12 companies in the industrial sector.

(2 record closes)

When the stock market crashed on October 19, 1987 — a date known colloquially as Black Monday — the Dow experienced its largest percentage drop in history, a whopping 22.6% decrease in a single day. 5This was velocity trade the Dow’s close at the peak of the 1920s bull market on Tuesday, September 3, 1929 before the stock market crash. This level would not be seen again until Tuesday, November 23, 1954, more than 25 years later.

2009 Recession

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. On Feb. 8, it entered a market correction when it fell 1,032.89 points to 23,860.46. The Dow started 2022 with a flourish, breaking closing records in the first two trading days oanda reviews of the year. The most recent record closing occurred on Jan. 4, when the index closed at 36,799.65, blowing past the all-time high closing of 36,585.06 it had just a day before. The chipmaker’s CEO said generative AI has “hit the tipping point” as it reported a 265% rise in revenue and laid out very upbeat guidance, a sign demand for AI hardware is booming.

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 following is a list of the milestone closing levels of the Dow Jones Industrial Average. President John F. Kennedy demanded the removal of the weapons and launched a 13-day naval quarantine to prevent ships from reaching Cuba, which may have held weapons from the Soviets. On Aug. 17, 1998, Russia devalued the ruble and defaulted on its bonds.

These funds track the DJIA through a similar composition and weighting of stocks. Through much of 2022 and 2023, investors were cautious and bearish about equity markets as inflation rocketed. Then, in the last few months of 2023, investors began piling back in as hopes grew that interest rates would soon be cut and a nasty recession averted. 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.

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