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

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 Dow suffered a market correction between August 2015 and April 19, 2016, leading to a 2016 downturn.

The Dow fell 17% in three months, from 2,864.60 on Aug. 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. The Dow gained 3,472.56 points during 2013, higher than any prior year on record. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision.

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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 reaches its lowest point of 6,594.44 on March 5, 2009 during a bear market. The 2008 stock market crash was more dramatic than any other downturn in U.S. history. It took almost four years for the market to bottom out at that time. Like most other stock market indices, the Dow undergoes periods of general increase and general declines or stagnation. A bull market is a term denoting a period of price increases, while a bear market denotes a period of declines.

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. 11The Dow reached an intraday high above 3,000 for the first time on Friday, July 13, 1990, before falling back below by the close.

Building on that, Salesforce and Microsoft are leaning into the growing demand for artificial intelligence (AI). 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. 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).

A bull market, or a bull run, is an extended period of rising stock prices. A bull market is the inverse of a bear market, which is a downward trending stock market. 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 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.

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Wall Street generally considers a bear market in session when multiple broad market indices have a downturn of 20% or more in value lasting for at least 2 months. In recent years, investors have become accustomed to record highs for the Dow, but there have also been a few pronounced drops. That said, we’ve never seen a fall as dramatic as the stock market crash of 1929, after which the Dow lost nearly 90% of its value over the course of three years.

1. The Dow rises 19.2% during a post-war recession thanks to strong business spending, even after a decrease in government wartime spending.
2. Learn more about how to invest despite the market’s dips by downloading Titan’s app today.
3. But just because the stock market is volatile doesn’t mean you should shy away from investing in it.
4. Before investing in such Third Party Funds you should consult the specific supplemental information available for each product.

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. Learn all about how the classification system that separates the stock market into 11 sectors can help investors understand the different sectors of the economy. In 2020, the Dow set a record high of 28,868.80 on Jan. 2 and another record a week later. After experiencing three of the biggest drops in history during the spring of 2020, it broke 30,000 on Nov. 24 and ended the year at a record high of 30,606.48.

Dow Jones Highest Closing Records

These changes are not done often to ensure the index’s stability and continuity. 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. 15This was the Dow’s close at the peak on October 9, 2007 before the financial crisis of 2007–2008.

Any historical returns, expected returns, or probability projections are hypothetical in nature and may not reflect actual future performance. 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 https://www.wallstreetacademy.net/ only and does not constitute a comprehensive description of Titan’s investment advisory services. At recent prices, the SPDR Dow Jones Industrial Average ETF returned 473% over the last two decades, or 9.1% annually. Additionally, it was slightly less volatile than the broader S&P 500, as evidenced by its 10-year beta of 0.95.

The 2000s Cyclical Bull Market (2006–

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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. It then enters a period of volatility and drops to 8,920.70 after markets open following the September 11, 2001 terrorist attacks. The recession ends in November 2002 after a period of war-related uncertainty. 10This was the Dow’s close at the peak of August 25, 1987 before the Black Monday stock market crash. 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.

After recovering from its Great Depression level, the Dow continued to be affected by several recessionary periods and crises leading up to the 2009 downturn. The index had three nine-day runs, last occurring in 1955 (when there were four nine-day stretches). The Dow continuously moved higher eight months in a row (the last occurrence of this was in 1995). On July 3, the Dow hit a new high when the Trump administration announced it would resume trade negotiations with China, averting additional tariffs (taxes on imports). The Dow Jones Industrial Average is one of the many gauges of stock market performance.