It’s also a good signal for the overall economy’s health, according to Ryan Detrick, chief market strategist at financial services firm Carson Group. Journalist Charles Dow and his business partner, Edward Jones, established the Dow Jones Industrial Average in 1896, starting with 12 companies in the industrial sector. The number of companies included in the index increased to 20 in 1916 and then to the current level of 30 in 1928. Since its inception just before the onset of the 20th century, the DJIA has remained one of the most frequently discussed and commonly tracked equities indexes.

Popular Stocks

Shares for most of the firms tracked by Dow rose in value on Friday, led by Intel (4.7%), IBM (2.8%) and Home Depot (2.6%), while shares for Walmart, Boeing and JPMorgan Chase fell slightly. The close was just shy of a previous record close of 40,003 set on May 17. The Dow Jones industrial average finished above 40,000 for the first time on Friday afternoon, doubling where the index hit shortly after Donald Trump became the 45th president.

(30 record closes)

The Dow Jones jumped over 250 points the day after the election, and the S&P 500 and NASDAQ also saw gains. Investors and traders bet on lower corporate taxes, fewer regulations, and stronger business growth. This led to the so-called “Trump Rally,” with the Dow Jones crossing 19,000 for the first time later that month. Share repurchases among the S&P 500 companies were 59% higher in the first quarter of 2014 than the first quarter in 2013. It was the largest amount since 2007, right before the stock market crashed.

Markets have been rallying since October on rising hopes that cuts may be on the way. Its historical trends offer valuable insights into market behavior and economic shifts. We’ve included a few key shocks to the stock markets along these timelines in addition to the presidents who were in office.

The Dow Jones Industrial Average (the Dow) is an index of the 30 top-performing 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. US Treasury yields fell as policymakers indicated they anticipate the Fed funds target rate will be reduced by 50 basis points this year. The yield on benchmark US 10-year notes fell 3.3 basis points to 4.249%, while the 30-year bond yield fell 2 basis points to 4.5593%. Tesla share price surged 4.68%, Nvidia stock price gained 1.81%, and Advanced Micro Devices shares rose 2.63%.

Did Trump’s Presidency Lead to Stock Market Success for Traders?

Above we have the 200-day EMA at the 5,730 level, and if we can get above there, then we can really start to take off and recover. I do think that’s coming sooner rather than later, but really at this point in time what we need to see is Jerome Powell suggests that the Federal Reserve is going to start cutting rates. The US Federal Reserve kept its benchmark overnight interest rate unchanged in the 4.25% – 4.50% range, and indicated that two quarter-point interest-rate cuts were likely later this year. The central bank hiked its projection of US inflation for 2025 and downgraded the US economic growth forecast.

When looking at what is the highest the Dow Jones has ever been, these external factors often play a big role in driving the market to new levels. Conversely, an encouraging drop in inflation reported earlier this week helped to fuel this latest rally. Consumer prices rose 3.4% from last April – a decline from March’s 3.5% annual increase. The CME FedWatch Tool shows investors share consolidation still expect the Federal Reserve to cut interest rates twice by the end of the year.

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 Dow’s activity broke new records in terms of downward movement in 2009. While it wasn’t as dramatic as the Great Depression, the drop happened much more quickly. After recovering from its Great Depression barclays trade level, the Dow continued to be affected by several recessionary periods and crises leading up to the 2009 downturn. This was the Dow’s third consecutive trading day with a record close and the fourth record closing in just two months.

Key Factors That Influenced Trump Stock Market Records

Stock buybacks soared as companies used tax savings to repurchase shares, driving prices even higher. The financial sector benefited from deregulation, while the tech industry thrived despite concerns about new policies. Volatility remained low, with the VIX (a key volatility index) staying near historic lows. Traders who followed the trend had plenty of opportunities to ride the rally, but the market’s stability wouldn’t last forever. 5This was the Dow’s close at the peak of the 1920s bull market on Tuesday, September 3, 1929, before the stock market crash. This level would not be seen again until Tuesday, November 23, 1954, more than 25 years later.

• As the Dow continues to evolve, the question what is the highest the Dow Jones has ever been may continue to change, as the index has the potential to break new records in the future.
• The index breached 26,000 on Jan. 17, then continued on to set 15 closing records in the rest of 2018.
• The Dow Jones’ all-time high came in February 2020, which was just a month before its biggest one-day point drop amid the COVID-19 pandemic.
• US stock market ended higher on Wednesday after the Federal Reserve kept interest rates unchanged as widely expected.
• The People’s Bank of China kept the one-year loan prime rate (LPR) at 3.1%, while the five-year LPR was unchanged at 3.6%.

However, rising deficits and trade tensions introduced uncertainty, creating volatility that traders needed to navigate carefully. Trump’s policies affected different stock market sectors in unique ways. Deregulation and tax cuts boosted financials, while trade wars created uncertainty for technology and industrial stocks. Energy and healthcare also saw major shifts depending on government actions and policy debates. Traders who paid attention to these sector-specific trends found opportunities in both rising and falling markets.

• It hit two of them in the first few weeks in January, closing above 25,000 on Jan. 4.
• Markets dipped to their lowest level of the day after Trump’s remarks.
• In a press conference following the decision, Powell contributed to the good mood.
• The index passed the threshold again the following day before reaching its all-time intraday high as trading opened the next week.

Mid-Term Performance (2018-

After the end of the second World War, the Dow started another recovery that ultimately led to the all-time closing high set back in 1929. 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. Given its large-cap focus, the roster of companies included in the Dow fails to include companies of other sizes. Many market observers think the S&P 500 is a much better representation of the economy, as it includes 500 companies and draws more widely from different sectors.

In parentheses, when helpful, we provide the Dow’s points as inflation-adjusted to Feb. 23, 2024, for a relative comparison to its record highs. Chris is a proprietary trader with more than 20 years of experience across various markets, including currencies, indices and commodities. As a senior analyst at FXEmpire since the website’s early days, he offers readers advanced market perspectives to navigate today’s financial landscape with confidence. Dow Jones 30 is quietly positive in the early hours, but it has to deal with the 42,000 level above to really get bullish. The 42,000 level also has the 200 day EMA sitting right there as well. So, it’s doubly important that we get above there before we start getting bullish.

Record Highs Set in 2015

The most recent all-time high for the DJIA was recorded on Jan. 5, 2022, with an intraday peak of 36,952.65 points. Since then, the index faced declines due to various factors such as inflation and geopolitical tensions. As of July 19, 2023, the Dow closed at 35,061.21 points, representing a 5.1% drop from its peak in Jan. 2022. After hitting its all-time high in Jan. 2022, the Dow continued to fall as markets were impacted by inflation and the war in Ukraine. 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.

Traders who paid attention to economic trends, Federal Reserve decisions, and government stimulus saw how quickly sentiment could shift on Wall Street. 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. Consumer prices also fell month-over-month for the first time since 2020.

The Federal Reserve’s decisions were a key driver of market trends, affecting mortgage rates, credit availability, and investor sentiment. Financials and industrials were among the best-performing sectors, as traders expected banks and manufacturers to benefit from pro-business policies. At the same time, technology stocks saw mixed reactions, with some concerns over trade policies that could impact companies like Tesla and major AI-driven firms. The market momentum in late 2016 set the stage for what would become a historically strong year for stocks. The Dow Jones Industrial Average (DJIA) is a stock market index that measures the performance of 30 large, publicly traded companies in the United States. The Dow Jones Industrial Average (DJIA) is a price-weighted average of 30 significant stocks traded on the New York moneyball: the art of winning an unfair game Stock Exchange (NYSE) and the Nasdaq.