-2.9 C
Innichen
Tuesday, January 25, 2022

Buy now

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

The Dow Jones Industrial Average, also called the Dow or DJIA, tracks 30 well-known, giant firms that commerce on the New York Stock Exchange (NYSE) and Nasdaq. As of early 2022, the Dow’s all-time excessive at market shut stands at 36,585.06 factors—reached on Jan. 3, 2022.

The index’s highest value, interval, additionally was on that day: At one level, the Dow reached 36,595.82 factors.

Key Takeaways

  • As of early 2022, the Dow’s all-time excessive at market shut stands at 36,585.06 factors—reached on Jan. 3, 2022.
  • The index’s highest value, interval, additionally was on that day: At one level, the Dow reached 36,595.82 factors.
  • The Dow lastly broke the 30,000 mark on Nov. 23, 2020.
  • The largest cumulative loss suffered by the DJIA was through the Nice Melancholy, when it misplaced practically 90% of its worth between 1929 and 1932. 
  • The most important single-day drop by proportion occurred in October of 1987; the most important single-day drop by factors occurred in March of 2020.

Dow All-Time Highs

The DJIA has constantly hit new highs over the 2010s. The longest bull market in historical past lasted roughly 11 years, beginning in March 2009, and ending in Feb. 2020.

Numerous data have been set in 2019, thanks partly to commerce talks with China. The index hit 22 report closes in 2019.

The Dow lastly broke the 30,000 mark the next yr. Uncertainty had been hanging over the markets as a result of unprecedented refusal of President Trump to concede the election to President-elect Biden. When Trump started the transition course of late on Nov. 23, 2020, shares got here roaring again.

2021 was additionally a banner yr. The Dow climbed to 31,522.75 factors on Feb. 16, 2021. It hit an all-time excessive of 34,200.67 factors on April 16, 2021. Within the autumn, it started to constantly shut above 35,000 factors, and by the final week in December, surpassed 36,000 factors.

Dow All-Time Lows and Plunges

Whereas the current decade has proven robust financial progress, resulting in loads of report highs for the Dow, there have been important plunges as properly, each over durations of time and in dramatic single-day or single-moment drops.

Maybe essentially the most notorious trough was through the Nice Melancholy, by which the Dow lost about 90% of its worth over the course of simply three years. It hit a low of 41.22 in 1932.

Because the Nice Melancholy, 2007-2008 has been essentially the most dramatic interval of collapse for the DJIA. The market fell over 50% in only a year-and-a-half, due to the subprime mortgage and credit crisis that kicked off the Nice Recession.

Throughout the recession across the flip of the twenty first century, the DJIA fell from 11,723 in Jan. 2000 to 9,796 in March 2001, falling 17%. The recession from 1973 to 1975 was additionally particularly troublesome for the DJIA, falling 45% from its 1,051 peak in 1973 to only below 600 in 1974. The Dow Jones additionally misplaced 26.5% through the Cuban missile disaster of 1962.

22.6%

The most important single-day drop, percentage-wise, that the Dow has suffered; it occurred when the market crashed on Oct. 19, 1987, aka Black Monday. Nonetheless, when it comes to factors, the Dow’s worst day was March 16, 2020, when it fell 2,997.1 factors—in response to the COVID-19 pandemic adoption of lockdowns all through the U.S. and the Fed slashing rates of interest to close zero.

Know-how and the DJIA 

Since its inception on Might 26, 1896, the calculation of the DJIA has turn out to be extra correct through the years, because of the assistance of know-how and electronic trading. At first, the index excessive was calculated utilizing the intraday buying and selling highs of every part inventory, although the highs for all 30 firms have been seemingly not reached on the similar time. This is called the Theoretical Dow Jones Index.

Presently, the Dow Jones calculates utilizing a “pre-determined mounted interval” all through the day, giving it a extra reasonable measure.

Because the index was first recorded 125 years in the past at 40.94, it has had a 6.94% annualized complete return via Dec. 31, 2021, adjusting for inflation with dividends reinvested. Since 2000, it has posted simply over a 6% annualized complete return. These outcomes point out that even when the Dow Jones sees drops alongside the way in which, it provides progress for long-term traders.

Related Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected

0FansLike
3,139FollowersFollow
0SubscribersSubscribe
- Advertisement -

Latest Articles

%d bloggers like this: