Dow closes above 38,000 for 1st time, setting record high

Berkshire is set to report fourth-quarter profits and its 2023 annual report on Saturday. Nvidia shares surged 16% after its latest earnings report topped expectations. The chipmaker has been a poster child for the impact of AI start-ups because it sells the chips many of these firms are clamoring for to build out their projects.

This high occurred only 42 trading sessions after closing above 19,000. That is the second-fastest rise in U.S. history (currently, the record is 24 sessions to go from 10,000 to 21,000 in 1999). The Dow Jones Industrial Average (the Dow) is an index of the 30 top-performing xor neural network U.S. companies. The most recent all-time-high record (as of this writing) was on Jan. 4, 2022, when it closed at 36,799.65. 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.

The previous high was recorded just a day prior, when the index ended the trading day at 36,585.06. 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. Broad market indexes only include securities with reasonable size and liquidity so that they can be purchased in an institutional size portfolio. Many micro-cap securities don’t trade with enough volume to be efficiently included in products such as index funds and exchange-traded funds (ETF).

But 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 uncertainty about war. Stock market gains since the 2008 financial crisis were mediocre in volume. Only three days traded more than 200 million shares, a level similar to the late 1990s. Of the 26 records set that year, 17 occurred after the presidential election.

1. The Dow hit a low that year of 28,715.85 on Sept. 30 but steadily started to go up with the occasional dips, sitting at 35,061.21 as of the market close on July 19, 2023; not too far from its all-time high.
2. The easiest way to invest in the Dow may be to buy shares in State Street Global Advisors’ SPDR Dow Jones Industrial Average ETF Trust, which trades under the ticker symbol DIA.
3. “The near-term momentum in AI-related stocks is likely to continue,” said Solita Marcelli, chief investment officer for the Americas at UBS Global Wealth Management.
4. The Dow Jones Industrial Average (the Dow) is an index of the 30 top-performing U.S. companies.
5. The index evolves over time and its stocks are sometimes removed and replaced.

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. Titan Global Capital Management USA LLC (“Titan”) is an investment adviser registered with the Securities and Exchange Commission (“SEC”). By using this website, you accept and agree to Titan’s Terms of Use and Privacy Policy. Titan’s investment advisory services are available only to residents of the United States in jurisdictions where Titan is registered. Nothing on this website should be considered an offer, solicitation of an offer, or advice to buy or sell securities or investment products.

The Senate reintroduced the bailout as the Troubled Asset Relief Program on Oct. 3. The following is a list of the milestone closing levels of the Dow Jones Industrial Average. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services.

But both could be long-term winners as more businesses seek productivity gains through automation.

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The Dow suffered a market correction between August 2015 and April 19, 2016, leading to a 2016 downturn. It began on Jan. 4, when the Dow closed 160 points lower as investors worried about a slowdown in China’s economic growth. 22This was the fastest 1,000 point gain taking only 5 trading days from closing above 32,000 to close above 33,000. 21After peaking on February 12, 2020, the Dow Jones rapidly fell into correction later that same month and into bear market territory in the next month amid the COVID-19 pandemic.

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. The index breached 26,000 on Jan. 17, then continued on to set 15 closing records in the rest of 2018. The Dow Jones Industrial Average is one of the many gauges of stock market performance. 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.

1915 (0 record closes)

It was the largest amount since 2007, right before the stock market crashed. 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.

(15 record closes)

It was formed in 1896 with 12 mostly industrial stocks and has been fixed at 30 since 1928. The index evolves over time and its stocks are sometimes removed and replaced. Unlike the S&P 500 and the Nasdaq, the Dow weights stocks by price rather than by market capitalization derived by multiplying share prices by the number of shares outstanding.

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. 13The Dow first traded above 10,000 on Tuesday, March 16, 1999, but dropped back before closing that day. The Dow closed at 9,997.62 on Thursday, March 18, 1999.[18] It would take nearly two weeks to close above 10,000 on Monday, March 29, 1999.

For instance, Salesforce and Microsoft have strong market positions and solid growth prospects that could unlock plenty of value for patient shareholders. The S&P 500 and the Dow Jones Industrial Average both https://forexhero.info/ marked new record closes, too. Indexes react to actual trades, and while investors may trade on the expectation of good or bad news, indexes are mathematical calculations that have nothing to do with emotion.

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. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others. Please see Titan’s Legal Page for additional important information.