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

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. The Dow’s all-time high at market close stands at 39,908.00, reached on May 15, 2024. The index hit its highest price at any time on May 16, 2024, when it surpassed 40,000 for the first time. Investors don’t have to make guesses about where to put their money in the stock market.

The most recent all-time-high record (as of this writing) was on Jan. 4, 2022, when it closed at 36,799.65. 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. Most market observers think the S&P 500 is a much better representation of the economy, as it includes 500 companies and draws more widely from different sectors. The Dow tracks 30 large, publicly owned blue-chip companies trading on the New York Stock Exchange and the Nasdaq.

Traders were confident in a business-friendly Republican president. The index closed above 23,000 on Oct. 18, 2017; slightly more than a month later, it broke 24,000. The Dow had two streaks lasting more than 10 days, which had not occurred since 1959.

Record Highs Set in 2013

In the bond market, treasuries saw modest strength after moving lower over the two previous sessions. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, dipped 2.2 basis points to 4.410 percent. The company reported $488.8 million in profits for the third quarter on $5.07 billion in sales. Analysts had expected $459.8 million in profits on a slightly higher $5.14 billion in sales, according to estimates compiled by Visible Alpha. Shares of Ross Stores (ROST) rose Friday morning as the discount retailer’s earnings came in better than expected. Friday’s earnings-driven jump adds to the stock’s recent bullish price momentum, but also triggers a heavily overbought  relative strength index (RSI) reading, which could lead to near-term profit-taking.

1. At the Dow’s inception, Charles Dow calculated the average by adding the prices of the 12 Dow component stocks and dividing by 12.
2. Nvidia stock dipped immediately after the company released its latest financial results on Nov. 20, but that might be a golden buying opportunity.
3. Stocks with higher share prices are given greater weight in the index.
4. In general, the Dow has underperformed during strong years in the stock market because the Dow has a higher focus on value and income, whereas the Nasdaq Composite focuses less on value and income.

At the Dow’s inception, Charles Dow calculated the average by adding the prices of the 12 Dow component stocks and dividing by 12. Over time, additions and subtractions to the index had to be accounted for, such as mergers and stock splits. A part of the Dow may be dropped when a company becomes less relevant to current trends of the economy, to be replaced by a new name that better reflects the shift. For instance, a company may be removed from the index when its market capitalization drops because of financial distress. 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.

Record Highs Set in 2020

After closing above 2,000 in January 1987,44 the largest one-day percentage drop occurred on Black Monday, October 19, 1987, when the average fell 22.61%. No one knew if a new bull market had begun until the Dow hit a higher low on March 11, 2003, closing at 7,524.06. 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 gbp to cad forecast for tomorrow, week, month Dow went into free fall, dropping 4% the next week.

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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. As a result, the Federal Reserve (Fed) began raising interest rates in March 2022 to slow the economy down and arrest the pace of price rise.While inflation persisted, Fed’s aggressive rate hikes stoked fears of a recession. The one before that came on the final trading day of 2021, when Dow closed at 36,488.63 on Dec. 29, 2021, smashing the record it set on Nov. 8, 2021. The Dow witnessed a sharp decline in the end of November over fears of 11 best freelance python developers inflation and the COVID-19 pandemic, before resuming its quest to break more all-time high milestones.

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. The factor is changed whenever a constituent company undergoes a stock split so that the value of the index is unaffected by the stock split. On Monday, Sept. exness forex broker reviews and comments 2021 about exness on forex 15, 2008, Lehman Brothers Holding, Inc. (an investment bank) declared bankruptcy. On Wednesday, panicky bankers withdrew $144 billion from money market funds, almost causing a collapse. A November streak occurred after Donald Trump’s presidential win on Nov. 8.

By the end of 2023, the previous high, registered in January 2022, had been surpassed, and the 37,000 mark had been breached. The index reached a new all-time high on May 16, 2024, surpassing 40,000 for the first time. The following are some milestones achieved by the Dow Jones Industrial Average.

Here’s a look at each period where the Dow Jones industrial average doubled since the index topped 1250 for the first time in 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. Shares of Intel, IBM and Home Depot helped drive the record-setting rally. The Dow fell 17% in three months, from 2,864.60 on Aug. 2 to 2,365.10 on Oct. 11, 1990.