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’s all-time high at market close stands at 39,908.00, reached on May 15, 2024. The index hit its highest price at any time on May 16, 2024, when it surpassed 40,000 for the first time. Major indices have been at or near record territory since the US elections, with investors betting that Trump’s program of tax cuts and regulatory scale-back would more than offset the drag from expected tariff increases. MicroStrategy, one of the world’s biggest holders of the cryptocurrency, was up 15% in recent trading to a new all-time high of its own, just below $500.
The Dow tracks 30 large, publicly owned blue-chip companies trading on the New York Stock Exchange and the Nasdaq. The selection is not based on strict quantitative criteria but rather on the decisions of the editors of The Wall Street Journal. Companies are chosen based on their reputation, growth, and relevance to the economy, with the aim of reflecting the overall health and trends of the industrial sector of the U.S. economy. In the autumn, it began to consistently close above 35,000 points, and by the last week in December 2021, it surpassed 36,000 points.
The Dow, relying on share prices rather than market capitalization, passed 40,000 for the first time on May 16 after Walmart’s shares reached an all-time high. The index passed the threshold again the following day before reaching its all-time intraday high as trading opened the next week. Dow’s record-setting day follows inflation falling to its lowest point in a year, increasing the possibility of the Federal Reserve cutting interest rates.
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Consumer prices also fell month-over-month for the first time since 2020. The market responded positively to wholesale prices increasing 0.2% last month, higher than projections of 0.1%, according to FactSet. The S&P 500 index and Nasdaq have similarly peaked at record highs this year as technology stocks like Nvidia have swelled—though Nvidia is not a Dow Jones component. As global markets navigate the uncertainties surrounding the incoming Trump administration and fluctuating interest rates, investors are seeking stability amidst volatility. Share repurchases among the S&P 500 companies were 59% higher in the first quarter of 2014 than the first quarter in 2013.
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- Nvidia shares, which gained 5% yesterday, fell 0.8% during Wednesday’s regular trading session and were slightly lower in extended trading even as the results topped expectations.
- Oil prices also rose more than 1% after Fed officials indicated near-future rate cuts.
- The Dow climbed to 9,034.69 on Jan. 2, 2009, before screeching down to 6,594.44 on March 5, 2009.
- Comcast shares were up about 1% in late trading Wednesday, narrowing the stock’s year-to-date loss to about 3%.
- Consumer prices rose 3.4% from last April – a decline from March’s 3.5% annual increase.
The yield on 10-year Treasurys, which has risen in recent weeks as investors have scaled back their expectations for the Federal Reserve to cut interest rates aggressively, was at 4.41%, up from 4.38% yesterday. On the losing end of Wall Street, Deere fell 2.1 percent despite reporting stronger profit for its latest quarter than expected. It cut its forecast for profit over the full fiscal year below analysts’ estimates, as farmers buy fewer tractors and other equipment. One report showed slightly more workers applied for unemployment benefits last week than economists expected, though the number remains low compared with history. Others said homebuilders broke ground on fewer projects last month than expected, manufacturing growth in the mid-Atlantic region was weaker than hoped and import prices rose more than forecast. Trading activity may be somewhat subdued next week due to the Thanksgiving Day holiday on Thursday, although traders are still likely to keep a close eye on the latest U.S. economic news.
The index had three nine-day runs, last occurring in 1955 (when there were four nine-day stretches). The Dow continuously moved higher eight months in a row (the last occurrence of this was in 1995). 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). All these events created a lot of uncertainty for investors and the 5 best stocks to buy for 2021 Dow bore the brunt of it, falling into a bear market in September 2022. Despite all time highs early in the year, six of the 20 worst-one day point losses for the Dow occurred in 2022.
A Brief History of the Dow
Some of the biggest winners of Wall Street’s “Trump Trade” include sectors where Trump himself, or his family and close supporters, have a business interest. Shares in several large banks — including Goldman Sachs, JPMorgan Chase, and Wells Fargo — soared as shareholders anticipate lighter government oversight of the financial sector. Target, which reports its quarterly results next week, was also rising, along with other retailers like Dollar General and Dollar Tree. Housing stocks also showed a significant move to the upside, driving the Philadelphia Housing Sector Index up by 1.6 percent. For the week, the Dow climbed 2% while the S&P 500 and Nasdaq each advanced 1.7%, according to Dow Jones Market Data.
It hit a low of 41.22 in 1932 (about 908 points, inflation-adjusted). Market watchers have been cheered this week by a broadening of the rally beyond the tech names that how to trade bonds in 2021 dominated earlier in the year. The broad-based S&P 500 climbed 0.4 percent to 5,969.34, while the tech-rich Nasdaq Composite Index added 0.2 percent at 19,003.65.
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Since Donald Trump’s election victory, the cryptocurrency has gained about 35% amid optimism that the incoming administration will establish policies that broadly benefit the asset class. Comcast (CMCSA) shares gained 1.5% after the company confirmed plans Best index funds 2021 to spin off several of its cable channels, including USA Network, CNBC and MSNBC, into a separate, publicly traded company. Investors are particularly embracing the so-called “Trump trade,” buying up stocks and other assets that they expect to do well under Trump’s second presidency.