Dow Jones History: Top Highs and Lows Since 1929

Broadcom (AVGO) shares traded at yet another all-time high after Bank of America joined Citi in raising its price target for the stock. BofA boosted its price target to $1,250 from $1,200, citing “strong VMWare synergies and growth potential.” Adobe (ADBE) shares fell 1.5% ahead of its quarterly earnings report after the bell. The design software maker was one of only eight stocks in the index to lose value Wednesday. The laggards included international e-commerce giants PDD Holdings (PDD), down 0.5%, and MercadoLibre (MELI), down 0.2%.

  1. To be safe, I would say Microsoft has to gain another $1 trillion in market cap, which would be a 35% return and put it around $540 a share.
  2. Most of them are open to trade Monday through Friday during regular business hours in local time.
  3. Stocks jumped, with the Dow rising to an all-time high, after the Federal Reserve held interest rates steady and forecast three rate cuts next year.
  4. Still, Rooney Vera said concerns remain about whether the rally is sustainable in the next 12 to 18 months, as risks of a recession aren’t eliminated.

The DJIA tracks the price movements of 30 large companies in the United States. The selected companies are from all major U.S. sectors, except utilities and transportation. The S&P 500 has outperformed the DJIA on an annualized basis over the last three-, five-, and 10-year periods. Fed Chair Jerome Powell tried to sound cautious, saying “inflation is still too high and ongoing progress in bringing it down is not assured and the path forward is uncertain.”

The risk of a stock split

Goldman, which derives a substantial amount of revenue from corporate dealmaking and trading, has been hit especially hard in the last two years by negative sentiment and market volatility. A number of records were set in 2019, thanks in part to trade talks with China. Various Registered Investment Company products (“Third Party Funds”) offered by third party fund families and investment companies are made available on the platform. Some of these Third Party Funds are offered through Titan Global Technologies LLC. Other Third Party Funds are offered to advisory clients by Titan.

However, returns have varied dramatically between past bull markets, so investors would do better to benchmark against a different metric. Specifically, the Dow Jones returned about 9% annually over the past four decades, and its performance will likely be similar over the next four decades. The index is maintained by S&P Dow Jones Indices, an entity majority-owned by S&P Global. 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. But unlike the S&P 500 and the Nasdaq, the Dow is a price-weighted index.

As per the name, the Dow was historically meant to represent the industrial sector. But it’s safe to say that sector balance is important in the Dow. Goldman Sachs may pose an even greater threat than UnitedHealth. Its market cap is just $124.6 billion, less than 5% of Microsoft’s size and less than a third of UnitedHealth’s. It makes it easier to outlast an economic downturn, achieve diversification, buy out competitors, and more.

But the Fed risks a rebound of inflation if it cuts interest rates too quickly, since stronger consumer demand could lead to an acceleration of price increases. The major stock indexes kicked off the year with sluggish performance but began to turn upward in the middle of last week. The S&P 500 also reached a record high, closing at about 4,850. The tech-heavy Nasdaq inched up to 15,360 by the end of trading on Monday. This stock market index, also known as the Dow or DIJA, tracks 30 large blue-chip companies on the NYSE and Nasdaq. Although the Dow isn’t as big as the S&P 500 or the Nasdaq, neither of them has been as influential or popular enough to be the subject of a Broadway musical.

Record Highs Set in 2018

References to any securities or digital assets are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. The Dow was volatile in 2015 because it was based on just a few companies. Record-low interest rates allowed firms such as Apple and IBM to borrow billions to buy back shares. These actions artificially raised their earnings per share and the prices of their remaining outstanding stocks (stocks which are still held by shareholders). “You can’t predict exactly when that bull market becomes a bear market and vice versa,” Shamrell says. “This unpredictability is exactly why it’s generally a best practice to stay the course with your retirement savings and keep your contribution rate consistent when the markets are turbulent.”

Now at a new 2023 high, the Dow is approaching a record. These stocks could push it over the top

They believe the number of companies is too small and it neglects companies of different sizes. Many critics believe the S&P 500 is a better representation of the economy as it includes significantly more companies, 500 versus 30. Alternatively, investors could take a more conservative approach and buy shares of the SPDR Dow Jones Industrial Average ETF (DIA -0.19%). 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.

MORE: Bank overdraft fees may soon plummet. Here’s what to know.

The Dow’s largest percentage drop in history happened when the market crashed on October 19, 1987—on what is now known as Black Monday—and the Dow lost 22.6% in a single day. As of March 2022, the Dow Jones’s all-time high at market close was 36,799.65, on Jan. 4, 2022. It reached a higher level the next day, at 36,952.65, but closed below its all-time high. Of the 26 records set that year, 17 occurred after the presidential election. The index’s 2016 closing high was 19,974.62, set on Dec. 20, 2016. It hit two of them in the first few weeks in January, closing above 25,000 on Jan. 4.

Record Highs Set in 2021

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 only and does not constitute a comprehensive description of Titan’s investment advisory services. Historically, markets tend to rise as the economy expands, and the Dow is no exception. The Dow experiences its largest single-day percentage drop of 22.6% on Oct. 19,1987.

The Long-Term Capital Management hedge fund almost collapsed, threatening to push its banking investors into bankruptcy. Former Federal Reserve Chairman accurate currency strength meter 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.

Broadcom (AVGO) rose 1.6% to close at a record-high for the third consecutive day after Bank of America joined Citigroup in raising its price target on the stock. 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. While a market index itself cannot directly be invested in, you can invest in the Dow through index funds and exchange-traded funds (ETFs) such as the SPDR Dow Jones Industrial Average ETF Trust (DIA). Investors in funds that track the Dow gain exposure to all the stocks listed on the index.

Leave A Comment