While it wasn’t as dramatic as the Great Depression, the drop happened much more quickly. 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 Dow was volatile in 2015 because it was based on just a few companies.

• Between Jan. 7, 2022, and Sept. 30, 2022, the Dow declined about 21% from 36,231.66 to 28,725.51.
• Less than a year later, the Dow marked its biggest one-day percentage gain and closed up 15.34 percent on March 15, 1933, according to CNN.
• However, the main reason McDonald’s stock has been on a tear is likely due to its recession resilience.
• The new highs reflected optimism that the Federal Reserve would continue to cut interest rates and that the incoming administration would promote business growth.
• 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.
• Since its inception just before the onset of the 20th century, the DJIA has remained one of the most frequently discussed and commonly tracked equities indexes.

The longest bull market in history lasted about 11 years, starting in March 2009 and ending in February 2020. 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 kept hitting record highs in late 2024, reaching over 45,000 in December of that year. In a SSRS/CNN poll, 45% approve of his job as president versus 54% who disapprove. The poll shows that despite the slightly higher disapproval numbers over Trump’s overall presidential job performance, the margin is closer than at any other point during his first term. McDonald’s forward P/E is close to its five-year median P/E, suggesting McDonald’s is a little overvalued right now.

Dow Surges To All-Time High—But Falls Short Of Closing Record

The Dow Jones Industrial Average, also known as the DJIA or the Dow, is astock market indexthat tracks 30 large, publicly ownedblue-chipcompanies trading on the New York Stock Exchange (NYSE) and the Nasdaq. Journalist Charles Dow created the index in 1896 to serve as a proxy for the overall U.S. economy. Critics also believe that factoring only the price of a stock in the calculation does not accurately reflect a company, as much as considering a company’s market cap would.

As of July 19, 2023, the Dow closed at 35,061.21 points, representing a 5.1% drop from its peak in Jan. 2022. 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 exclusively large-cap focus, the roster of companies included in the Dow fails to include companies of other sizes.

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 2013.58 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.

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The Dow Jones Industrial Average hit 10,000 for the first time in March 1999. The DJIA then hit 11,750 in January 2000, before falling to below 7,200 in October 2002 after the dot-com crash. These latest changes mark just the 53rd adjustment to the DJIA since its inception in 1896 and highlight a shift toward companies that are more relevant in their respective industries. The Dow Jones Industrial Average (DJIA) tracks thirty of America’s biggest and most established companies, acting like a quick temperature check of the U.S. economy.

The ten components with the largest dividend yields are commonly referred to as the Dogs of the Dow. As with all stock prices, the prices of the constituent stocks and consequently the value of the index itself are affected by the performance of the respective companies as well as macroeconomic factors. 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. Donald Trump’s presidential approval ratings appear immune to the somewhat chaotic start to his second term and the most recent onslaught of tariffs and trade wars — hitting his all-time high, according to new poll data.

Dow 5000 to 10,000: 1,224 days

Systemwide sales refers to total sales to McDonald’s operated locations and franchised stores. Shares of electric popular forex chart patterns vehicle maker Tesla, which has experienced a rough week of trading, closed down 3% Thursday to $240.68, erasing its gains from Wednesday. The electrical vehicle maker, led by billionaire Trump ally Elon Musk, is down around 40% year-to-date.

Recession of 1957

• While the Dow includes a range of companies, all can be described as blue chip companies with consistently stable earnings.
• Please bear with us as we address this and restore your personalized lists.
• The Dow Jones Industrial Average (DJIA) is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange (NYSE) and the Nasdaq.
• 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, also known as the DJIA or the Dow, is astock market indexthat tracks 30 large, publicly ownedblue-chipcompanies trading on the New York Stock Exchange (NYSE) and the Nasdaq.

The recession from 1973 to 1975 was also especially troublesome for the DJIA, falling 45% from its 1,051 peak in 1973 to just under 600 in 1974. A number of records were set in 2019, thanks in part to trade talks with China. Journalist Charles Dow and his business partner, Edward Jones, established the Dow Jones Industrial Average in 1896, starting with 12 companies in the industrial sector. The number of companies included in the index increased to 20 in 1916 and then to the current level of 30 in 1928. Since its inception just before the onset of the 20th century, the DJIA has remained one of the most frequently discussed and commonly tracked equities indexes. The index closed above 18,000 on Dec. 23, and then closed its high for the year at 18,053.71 on Dec. 26.

In conclusion, the DJIA reached its all-time high of 40,051.05 points in May 2024. This historic peak came after years of growth, economic recovery, and optimism in the market. By understanding the events and factors behind this achievement, we can better appreciate the significance of this record-breaking moment in stock market history. The 2008 stock market crash was more dramatic than any other downturn in U.S. history. It took almost four years for how to trade litecoin the market to bottom out at that time.

Other presidential approval rating polls for Trump have held steady since his first day in office. On September 15, 2008, a wider financial crisis became evident after the Bankruptcy of Lehman Brothers along with the economic effect of record high oil prices which had reached almost $150 per barrel two months earlier. The Dow set two milestones in 2014 and set 39 closing records. Share repurchases among the S&P 500 companies were 59% higher in the first quarter of 2014 than the first quarter in 2013. It aafx trading was the largest amount since 2007, right before the stock market crashed.

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

As such, point moves are a way to measure the relative change in the index’s value. That said, when comparing the value of the DJIA over time, many financial sites, as we have done above, use an inflation-adjustment calculator such as the U.S. Bureau of Labor’s CPI since this gives the relative change over time.

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. The Dow Jones Industrial Average (DJIA), Dow Jones, or simply the Dow (/ˈdaʊ/), is a stock market index of 30 prominent companies listed on stock exchanges in the United States. The Dow’s activity broke new records in terms of downward movement in 2009.

After its worst week in six months, the S&P 500 lost another nearly 3% on Monday. The benchmark index has now dropped about 9% since hitting a record high on February 19. In summary, the Dow Jones Industrial Average remains a key barometer of the stock market, reflecting the performance of major U.S. companies, albeit with limitations due to its narrow focus on only 30 large-cap stocks. Its historical trends offer valuable insights into market behavior and economic shifts. As the economy changes over time, so does the index’s composition.

It hit an all-time high of 34,200.67 points on April 16, 2021. In the autumn, it began to consistently close above 35,000 points, and by the last week in Dec. 2021, it surpassed 36,000 points. The S&P 500 and Nasdaq rebounded 1.1% and 1.3% on Friday, respectively, after both indexes posted their worst trading days since late April. Shares for most of the firms tracked by Dow rose in value on Friday, led by Intel (4.7%), IBM (2.8%) and Home Depot (2.6%), while shares for Walmart, Boeing and JPMorgan Chase fell slightly. The close was just shy of a previous record close of 40,003 set on May 17. The DJIA tracks the price movements of 30 large companies in the U.S..

And the jobs market was still in growth mode in January and February. Selling accelerated after Trump announced plans to lob a 50% tariff on steel and aluminum imports from Canada – and warned more tariffs could be on the way. The Dow Jones’ all-time high came in February 2020, which was just a month before its biggest one-day point drop amid the COVID-19 pandemic. Included in all of the Dow Jones historical charts are the high, low, and closing prices for each quarter • presidential terms • recessions and periods of expansion • and geo-political events. Investing directly in the Dow isn’t possible, but investors can gain exposure to its performance through index funds or exchange-traded funds (ETFs) like the SPDR Dow Jones Industrial Average ETF Trust (DIA). While the Dow is widely followed, some critics argue its limitations.

The Dow fell 17% in three months, from 2,864.60 on Aug. 2 to 2,365.10 on Oct. 11, 1990. Kimberly Amadeo has 20 years of experience in economic analysis and business strategy. 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 which the Dow lost about 90% of its value over three years.