The 30 best-performing American corporations make up the Dow Jones Industrial Average (the Dow). As of the time of writing, the most recent all-time high record was set on January 4, 2022, when it closed at 36,799.65. This was the fourth record closing for the Dow in just two months and its third straight trading day with a record close. The index reached its previous high just one day earlier, when it closed the trading session at 36,585. The previous one occurred on the last trading day of 2021, when the Dow closed at 36,488.63, shattering the previous record it had set on Nov. 8, 2021. After a significant drop at the end of November due to concerns about inflation and the COVID-19 outbreak, the Dow resumed its ascent toward new all-time high benchmarks. The Dow increased by more than 5,000 points between November 2020 and July 2021. It reached 30,000 for the first time on November 24, 2020, closing at 30,046.24, and on July 23, 2021, it reached 35,061.55. The Dow closed at 29,551.42 on February 12, 2020, setting the highest closing record prior to November 2020, before the 2020 recession and the COVID-19 epidemic took hold.
Main Points
- On the first two trading days of January 2022, the Dow reached all-time closing highs.
- On January 4, 2022, the Dow closed at 36,799.65, setting the most recent record closing.
- Throughout 2021, the Dow reached a number of new all-time highs, one of which occurred on the final trading day.
- On March 9, 2020, the 2020 stock market crash got under way. The Dow had three of the worst point dips in American history when it dropped a record 2,013.76 points to reach 23,851.02 and then fell two more times that year.
- On March 11, 2020, the Dow closed at 23,553.22, a 20.3 percent drop from its peak on February 12, 2020.The 11-year bull market that had begun in March 2009 came to an end as a result, ushering in a bear market.
- In the past, the stock market and the economy have performed similarly. During a recession, there is a bear market (price decline of 20% or more), while during an expansion, there is a bull market (price increase). Since March 11, 2009, when the Dow ended at 6,930.40, there has been a bull market. The longest bull market in American history didn't decline by 20% after that until March 2020. The 2020 stock market meltdown and the recession, however, saw record-breaking declines. 1
- One of the many indicators of stock market performance is the Dow Jones Industrial Average. The Dow's post-Great Depression history illustrates how stock market swings correspond to the normal phases of the business cycle.
2022 Will See Record Highs
On the first two trading days of the year, the Dow set closing records, getting off to a strong start for 2022. On January 4, the index closed at a record-breaking 36,799.65, surpassing the previous day's all-time high closing of 36,585.06. This was the most recent record closing.2021 Will See Record Highs
The Dow continued to increase in early 2022 following a record-breaking 2021. On December 29, 2021, the index concluded the final trading day of the year with a record high of 36,488.63. On Nov. 8, 2021, just over a month earlier, the Dow finished at 36,432.22, setting the previous closing record. The Dow broke many records for closing highs in 2021, closing above 36,000 on November 2 for the first time. The Dow hadn't reached a high since August before that run. The Dow closed at 35,625.40 on August 16, 2021. Since July, there has been an upward trend. The Dow ended at 35,061.55 on July 23, 2021, marking the first time it had done so above 35,000. The following trading day, July 26, 2021, saw another peak (35,144.31). The Dow achieved more significant milestones several months earlier. The Dow finished at 32,297.02 on March 10, marking the first time it had done so above 32,000. The Dow finished at 33,015.37 on March 17, one week later, marking the first time it had done so above 33,000. It first crossed 34,000 on April 15, 2021, closing at 34,035.99. The Dow reached an all-time high of 31,188.38 at the beginning of the year, on January 20, 2021. Just one week into the year, on January 7, 2021, the Dow closed above 31,000 for the first time.2020 Saw Record Highs
At 30,606.48, the Dow closed the year at a record high. It exceeded 30,000 on November 24, 2020, and ended the day at 30,046.24. The previous record was set on November 16, 2020, when it ended the day at 29,950.44. Additionally, it had a strong start to 2020. On January 2, 2020, the Dow reached a record high of 28,868.80. A week later, it broke yet another record. Then, on January 15, it passed a significant threshold by going above 29,0001.2019 Saw Record Highs
The Dow reached two milestones and established 22 record closures in 2019. When the Trump administration stated it would begin trade negotiations with China on July 3, the Dow reached a new high, preventing the imposition of extra tariffs (taxes on imports). Even though trade negotiations had broken down until November, the Dow responded by reaching record highs throughout the latter part of the year. On July 11, it reached a milestone by closing above 27,000, and on November 15, it reached another by closing above 28,000 (in the chart below, milestones are noted).Records were broken in 2018
In 2018, the Dow reached two milestones of 1,000 points. In the first three weeks of January, it reached two of them, closing over 25,000 on January 4. On January 17, the index crossed above 26,000, and during the course of the rest of 2018, it set 15 closing records. The Dow reached 26,616.71 on January 26, 2018. The marks set in the fall were the most recent ones. The Dow plunged precipitously after reaching its peak on January 26 and fell 4% the following week. It underwent a market correction on February 8 when it dropped 1,032.89 points to 23,860.46. The advancement in Trump's renegotiation of the North American Free Trade Agreement reassured investors. On August 27, 2018, the Dow reached 26,049.64, completing a six-month correction (a loss of at least 10%).This was 10% higher than its March 23 closing low of 25,533.20. 2. Since a correction lasted for 223 sessions in 1961, this one was the longest.2017 Saw Record Highs
In 2017, the index set 70 closing records. The Dow achieved five 1,000-point milestones in a single year for the first time. The index reached a close of 20,068.51.2 on January 25, 2017. After closing above 19,000, this peak was reached after just 42 trading sessions. In American history, that is the second-fastest increase (currently, the record is 24 sessions to go from 10,000 to 21,000 in 1999). After a 12-day run, it closed above 21,000 on March 1st, 2017. This was the longest such sequence since the record 13-day span in 1987. 5. On August 2, 2017, the Dow crossed the 22,000 mark, marking the first time it had done so in a single year. On October 18, 2017, the index closed above 23,000; a little over a month later, it broke 24,0003. Since 1959, there have not been two streaks of the Dow that lasted more than ten days. The previous nine-day run for the index was in 1955. (when there were four nine-day stretches). Eight consecutive months saw the Dow rise steadily (the last occurrence of this was in 1995). Five historic records were set during the final months of 2017.2016 Saw Record Highs
In 2016, the Dow had one milestone and 26 closing records. 17 of the 26 records broken that year did so after the election of the president. On December 20, 2016, the index reached a closing high of 19,974.62 Between August 2015 and April 19, 2016, the Dow had a market correction that caused a 2016 decline. It all started on January 4, when investors' concerns over a slowdown in China's economic development caused the Dow to settle 160 points lower. On January 7, 2016, the Dow had its worst year-to-date start, falling 5.2 percent to 16,514.10.It decreased to 16,346.45 the following day. The Dow dropped 1,078.58 points (6.18 percent) over that week, and the harm is still being done. Investors panicked as a result of the depreciation of the yuan, the drop in oil prices, and the turbulence in the Chinese stock market, and it closed at 15,766.74 on January 20. Then, on February 11, it hit a low of $15,660. After turmoil rocked the European Union, investors flocked to safe U.S. markets in July and August, which helped the Dow rise. The day following Brexit, on June 24, the Dow dropped 610.32 points (when the United Kingdom voted to leave the EU). The largest investors in the UK, American companies, were put in danger. A November streak started following Donald Trump's election victory on November 8. Traders had faith in a Republican president who was pro-business. On November 22, 2016, the Dow closed over 19,000 points.2015 Saw Record Highs
In 2015, the Dow set six closing records. After achieving a record high in May 2015, the Dow plummeted 531 points on Aug. 21, closing at 16,459.75. On August 24, sometimes known as Black Monday, it dropped another 1,089 points to 15,370.33 inside the first few minutes of trading. Because of the decline, the index entered a correction but not a bear market, as it was more than 16% lower than its all-time high reached in May of the same year.Investors feared that the index would continue to decline as a result of the devaluation of the Chinese yuan and the pending Fed rate hike. At 15,871.39, the market ended higher. The Dow closed at 15,666.44 on Tuesday, August 25, as the sell-off persisted, but it picked up speed on Wednesday and concluded at 16,285.51.2. Due to its reliance on a small number of companies, the Dow was erratic in 2015. Because of historically low borrowing rates, companies like Apple and IBM were able to borrow billions to repurchase shares. These moves artificially increased their remaining outstanding stock prices and earnings per share (stocks which are still held by shareholders).2014 Saw Record Highs
The Dow set two milestones in 2014 and set 39 closing records. Its yearly low was 15,372.80, which was attained on February 3. When compared to the same period in 2013, the first quarter of 2014 saw a 59 percent increase in share repurchases among S&P 500 corporations.$159.3 billion was spent in total. Since 2007, just before the stock market meltdown, it has been the highest sum. It reached 17,000 on July 3 and a new record on July 16 before entering a two-month correction. On October 31, the Federal Open Market Committee declared that interest rates wouldn't increase until 2015. The promise of reduced interest rates for the remainder of 2014 was well received by investors. On December 23, the index closed above 18,000, and on December 26, it reached its year-high closing price of 18,053.71. Two of the closing records are depicted in the graph below as they rise by a thousand.2013 Saw Record Highs
Two Dow milestones were achieved in 2013. In 2013, the Dow gained 3,472.56 points, the most ever in a single year. Its percentage growth was 26.5 percent. The index recovered from the Great Recession on March 5, 2013, closing at 14,253.77.2. It took five years to exceed its Oct. 9, 2007, high of 14,164.53. On May 7, the Dow crossed the 15,000 mark for the first time; on November 21, it crossed the 16,000 mark. 52 records were set at the year's end. The following graph displays 12 of those records:Activity on the Dow Jones from 1929 to 2009.
In 2009, the Dow's activity set new lows for downward movement. The decline occurred much faster, even if it wasn't as severe as the Great Depression. The Dow continued to be impacted by numerous recessions and crises before the 2009 downturn, even after it had recovered from its Great Depression low.The Recession of 2008–2009
Compared to past recessions in American history, the 2008 stock market meltdown was the most dramatic. In just 17 months, the market has dropped more than 50%. This was less than the Great Depression's 90 percent decline. The market didn't bottom out until almost four years later. The Dow closed at 14,164.43 on October 9, 2007, the day before the recession began. GDP growth fell by 1% in the fourth quarter, signaling the start of the recession (it was later re-estimated at a positive 2.9 percent). The Dow began to progressively fall. The Dow fell to 11,000 following the collapse of Bear Stearns in April 2008 and a dismal GDP report in the second quarter of 2008. Numerous analysts believed that this 20% loss marked the market bottom, but it wasn't. Lehman Brothers Holding, Inc., an investment bank, filed for bankruptcy on Monday, September 15, 2008. Money market funds almost collapsed on Wednesday as a result of bankers' panicked withdrawal of $144 billion from them. The Dow dropped 777.68 points on September 29, 2008. This was the biggest point decline in a single day in company history. The U.S. House of Representatives' rejection of a $700 billion bailout measure to save failing banks shocked investors. On October 3, the Senate reintroduced the bailout under the name Troubled Asset Relief Program. However, the Dow fell 13% in October. By Nov. 20, 2008, it had sunk to 7,552.29, a new low. Still, this wasn't the actual market bottom. On January 2, 2009, the Dow rose to 9,034.69 before tumbling sharply to 6,594.44 on March 5, 2009. The Dow eventually changed direction on July 24, 2009. By closing the day at 9,093.24, it had surpassed its January high. 2 Since the financial crisis of 2008, the volume of stock market gains has been average. Compared to the late 1990s, only three days saw trading of more than 200 million shares. Following the recession, volume decreased and didn't increase.The 2001 Recession
Due to the explosion of online firms, the Dow reached its peak on January 14, 2000, closing at 11,722.98. One of the biggest bull markets in American history came to an end at that time. The Dow has increased 1,409 percent since closing at 776.82 on August 12, 1982. Soon after, it started to decline, reaching its first low of 9,796 on March 7, 2000. It picked up its speed once more, peaking at 11,124.83 on April 25, 2000. Up to March 14, 2001, when it fell to 9,973.46, it fluctuated in this range. This sparked the recession that year. Following the 9/11 terrorist attacks, the Dow fluctuated until the markets closed. The Dow fell to 8,920.70 when the markets reopened on September 17, 2001. Up to October 9, 2002, the Dow was depressed by the threat of conflict. It fell by 37.8% from its peak that day to close at 7,286.27. In November, the recession was over. When the Dow As the market closed at 7,524.06 on March 11, 2003, a higher low, no one could tell if a new bull market had started.The Currency Crisis of 1998
After failing to protect its currency from speculative attacks, Thailand cut its peg to the dollar on July 2, 1997. All around Southeast Asia, currency values decreased. The Dow lost its most points ever on October 27, 1997, dropping 554.26 points. 2. The U.S. stock market suspended trading after it ended at 7,161.15, a loss of 7%. On August 1, 2010, this entry was published. Russia depreciated its currency on August 17, 1998, and then stopped paying its debts.- The Dow Jones Industrial Average dropped 13% by August 31, from 8,714.64 on August 18 to 7,539.06 on that date. The Long-Term Capital Management hedge fund almost went under, endangering the financial stability of its bank investors. They were persuaded to assist the hedge fund by former Federal Reserve Chairman Alan Greenspan, preventing more devastation.
1990–1991 Recession
Iraq attacked Kuwait on August 2, 1990. The Dow fell 17 percent from 2,864.60 on August 2 to 2,365.10 on October 11, 1990.2The Stock Market Crash of 1987
On October 19, 1987, the Dow fell by 23%, from 2,246.73 to 1,738.74. Computer trading that compelled sell orders as the market declined may have contributed to the Black Monday stock market crash. For two years, the Dow didn't reach its top of 2,722.42 on August 25, 1987. The savings and loan crisis of 1989 was caused by the loss of liquidity from this disaster.The Recession of 1980-1982
The Dow fell 16 percent from a high of 903.84 on February 13, 1980, to a low of 759.13 on April 21, 1980. In response, the Federal Reserve, led by Paul Volcker, dropped the federal funds rate (the interest rate at which banks lend money to one another overnight) to 8.5 percent. On April 27, 1981, the Dow increased to 1,024.05. The Fed then increased interest rates to fight inflation, which decreased corporate expenditure. By August 12, 1982, the Dow had dropped 22.6 percent to 776.92.The Recession of 1973–1975
On December 4, 1974, the Dow finished at 598.64.2, down 45 percent from its peak of 1,051.70 on January 11, 1973.By abolishing the gold standard, President Nixon contributed to the current recession.The 1970s recession
Between December 3, 1968, and May 26, 1970, the Dow fell by 30%. From a top of 985.21 to a low of 631.16.2, it dropped.The Cuban Missile Crisis of 1962:
On February 7, 1962, the US imposed a trade embargo on Cuba. From its post-election high of 728.8 on December 1, 1961, to its low of 535.76 on June 26, 1962, the Dow fell 26.5 percent.When American spy satellites found Soviet nuclear missile bases in Cuba on October 14, 1962, tensions grew. In order to stop ships from reaching Cuba that might have had Soviet-made weapons on board, President John F. Kennedy ordered that the weapons be removed and imposed a 13-day naval quarantine. The Soviet Union and the United States eventually came to an arrangement in which Kennedy promised to remove all nuclear missiles stationed in Turkey while Khrushchev removed all missiles from Cuba. The day following JFK's speech on October 22, the Dow fell 2%. On October 28, 1962, the crisis was over.The 1960 Recession
The Dow fell 13.9 percent from 679.36 on December 31, 1959 to 585.24 on November 1, 1960. The recession, which had its start in April 1960, was quickly followed by it. It lasted for ten months until President Kennedy used stimulus expenditure in February 1961 to put an end to it.1957 recession
From 506.21 on August 1, 1957, to 434.71 on November 1, 1957, the Dow plummeted by 14.1%. Due to the Fed's contractionary monetary policies, the decline spanned the eight-month recession from August 1957 to April 1958.1953 recession
The Dow dropped from 292.14 on January 2, 1953, to 262.54 on September 1, 1953, a drop of 10.1%. The Dow reached a new peak of 382.74 on November 23, 1954. The pre-Depression high of 381.17, established on September 3, 1929, had to be surpassed after 25 years. The decline was caused by a 10-month slump that lasted from July 1953 to May 1954, when the military was demobilizing after the Korean War.The 1949 Recession
From 193.16 on June 15, 1948, to 161.60 on June 13, 1949, the Dow fell by 16%. It did so in reference to an 11-month span between November 1948 and October 1949, when the economy started readjusting to production levels seen in times of peace.Recession of 1945
During this depression, which lasted from February to October 1945, the Dow increased by 19.2%. On February 1, 1945, it was 153.79, and on October 1, 1945, it was 183.37. Government spending decreased after World War II, which caused the GDP to decline by 10.6 percent. The stock market's success was, however, helped by healthy company spending.Decade of Great Depression
During the Great Depression, the Dow dropped by 90% in less than four years. On September 3, 1929, it was 381.17. It was only 41.22.2 on July 8, 1932. The 1929 stock market crash served as the catalyst for the Dow's decline, although the Great Depression had already begun in August of that year when the economy shrank. On Black Thursday, October 24, the market crashed, which lasted through Black Tuesday. A 23 percent drop in stock prices cost investors $30 billion (the equivalent of $396 billion today).The public was terrified since that was more than the total cost of World War I. The Dow did not reach its 1929 peak until 25 years later.Questions and Answers (FAQs)
How does the Dow Jones Industrial Average work as an investment
Purchasing shares of the SPDR Dow Jones Industrial Average ETF Trust from State Street Global Advisors, which trades under the ticker name DIA, may be the simplest way to invest in the Dow. The index is tracked by this exchange-traded fund (ETF).What 30 stocks make up the Dow Jones
In terms of index weighting, the following 30 companies are part of the Dow Jones Industrial Average as of February 2022: Apple, Procter & Gamble, Walmart, IBM, Chevron, Merck & Co., Dow Inc., Coca-Cola, Verizon, Cisco, Intel, McDonald's, Salesforce, Amgen, Honeywell, Boeing, Caterpillar, 3M, Disney, Johnson & Johnson, American Express, Nike, JP Morgan Chase, Travelers Companies, Apple, Goldman SachsWhat are the Dow Jones Sustainability Indexes' key focus areas
Some form of environmental, socioeconomic, and governance (ESG) screening is used by about 20 different Dow Jones indexes. Some regions or indices exclude particular businesses, including gambling and arms manufacturing. Others apply the Corporate Sustainability Assessment of S & P Global to specific geographical areas.