Dow Jones breaks 30,000 for the first time as Joe Biden’s transition begins
Dow 30,000 is a milestone of nearly 125 years in manufacturing.
The average began tracking the stocks of the most powerful companies in 1896, and it has served as a general measure of market health through 22 presidents, 24 recessions, one Great Depression, and two global pandemics.
Along the way, it has also weathered at least two stock market crashes and countless rallies, corrections, bulls and bears.
The blue chip index took a little over 120 years to cross the 20,000 mark for the first time in early 2017, just after President Donald Trump took office.
It took a little less than a year after that to reach the 25,000 points January 4, 2018.
But the past three years have been quite a roller coaster ride. Both the Dow Jones and the S&P 500 closed lower in 2018, marking the worst year for blue-chip stocks in a decade.
This dive included the three the biggest drops in points in a day recorded during just six trading days in mid-March.
Fortunately for equity investors, the bear market turned out to be short lived.
With the US Federal Reserve and Congress providing economic relief, the blue chip indices have regained all of their previous losses, and then some, since that March sell-off.
He crossed the 30,000 mark for the first time in trading Tuesday morning local time.
Here are some important stops along the Dow’s 30,000 route:
Dow is trained: The first daily close, May 26, 1896, was 40.94. The Dow Jones did not get off to a good start, plunging 30% to an all-time low of 28.48 in August of the same year.
Dow 100: The Dow Jones closed in triple digits for the first time in January 1906. It marked an impressive rally for the average, which had reached an all-time low when Teddy Roosevelt was president. The Federal Reserve would not be created for seven years.
Crash of 1929: The Dow Jones lost 38 points on October 28 and another 31 points the next day. It may not sound bad today, but it represented consecutive 13% and 12% declines in the value of the Dow Jones. These are still two of the worst day-to-day percentage declines in index history.
Dow 1000: November 14, 1972. Richard Nixon had just been re-elected by taking 49 States. The components of the Dow, which had not changed for 13 years, included Woolworth, Eastman Kodak and International Nickel.
1987 crash: On October 19, the Dow Jones plunged 508 points, a 23% drop that remains the largest single-day percentage drop in history. A week later, it plunged 8%. But the damage was short-lived: within a year, the Dow Jones had returned to pre-crash levels.
Dow 10,000: March 29, 1999. The “irrational exuberance” of the tech bubble was in full swing as the Dow Jones gained 1,000 points in less than a year to reach this benchmark. He gained 1,000 more points the following month alone.
A year later, the dot-com stock bubble burst, causing the Dow to fall nearly 30% in September 2001.
2008-2009 merger: The financial crisis caused the Dow to lose about half of its value in less than a year, hitting a low to close at 6,547 on March 9, 2009. The worst day was September 29, 2008, when the Dow lost its value. who was then a record 778 points after Congress rejected a $ 700 billion bank bailout. The rescue plan was then approved.
Dow 15,000: May 7, 2013. As the economy continued to recover from the Great Recession, the Dow Jones experienced one of the strongest periods in the current bull market. It broke the 15,000 mark and ended the year up 26.5%, marking the best full-year performance in the current bull market. The Dow almost matched that of 2017, up 25%.
Dow 20,000: January 25, 2017. The stock market had a good run from the day after the 2016 election, with the Dow Jones gaining nearly 10% as investors eagerly awaited lower taxes and less regulation under the Trump administration.
Dow 25,000: January 4, 2018. The adoption of Trump tax cuts, notably the reduction in the corporate tax rate in December 2017, helped fuel the rapid jump between 20,000 and 25,000.