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These big, round numbers don’t mean much, but they do serve as a reminder that over time stock investments can pay off. The S&P 500 has returned about 10.6% annually for the past 100 years, according to analysis from Trade That Swing. 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. The Dow is worth a closer look for risk-averse investors or anyone who wants a less expensive opportunity in today’s market. These changes are not done often to ensure the index’s stability and continuity. It hit an all-time high of 34,200.67 points on April 16, 2021.

The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation. Individuals can invest in the Dow, which would mean gaining exposure to all of the companies listed in it, through exchange-traded funds (ETFs), such as the SPDR Dow Jones Industrial Average ETF (DIA). Companies are replaced when they no longer meet the index’s listing criteria with those that do. Over time, the index became a bellwether of the U.S. economy, reflecting economic changes. Steel was removed from the index in 1991 and replaced by building material company Martin Marietta.

The Dow gained 3,472.56 points during 2013, higher than any prior year on record. A November streak occurred after Donald Trump’s presidential win on Nov. 8. Traders were confident in a business-friendly Republican president. The Dow responded with new highs throughout the latter part of 2019, even though trade negotiations had broken down until November. It hit a milestone on July 11, closing above 27,000, and then another on Nov. 15, closing above 28,000 (in the chart below, milestones are noted).

2009 Recession

1. The tech companies in the Dow — Apple, Microsoft, Cisco Systems, International Business Machines, Intel, and Salesforce — are all proven businesses and leaders in their fields.
2. Critics also believe that factoring only the price of a stock in the calculation does not accurately reflect a company, as much as considering a company’s market cap would.
3. The Dow hit one milestone and had 26 closing records in 2016.
4. The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation.
5. Account holdings and other information provided are for illustrative purposes only and are not to be considered investment recommendations.

The DJIA is the second-oldest U.S. market index after the Dow Jones Transportation Average. The DJIA was designed to serve as a proxy for the health of the broader U.S. economy. Often referred to simply as the Dow, it is one of the most-watched stock market indexes in the world. While the Dow includes a range of companies, all of them can be described as blue-chip companies with consistently stable earnings. Where p are the prices of the component stocks and d is the Dow Divisor.

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. 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. The one before that came on the final trading day of 2021, when Dow closed at 36,488.63 on Dec. 29, 2021, smashing the record it set on Nov. 8, 2021.

Dow Surges To All-Time High—But Falls Short Of Closing Record

The index breached 26,000 on Jan. 17, then continued on to set 15 closing records in the rest of 2018. The stark contrast in valuation shows that premium investors are willing to pay for growth right now. And it also shows that, despite a strong year-to-date return for the Dow, the index is still a fairly good price. The Invesco QQQ Trust’s expensive multiple shows that investors are banking on future earnings, not present earnings.

The close was just shy of a previous record close of 40,003 set on May 17. An ambitious suite of investment products aimed at growing your wealth. From active management and index investing to alternatives and individual stock/ETF trading. A bet on the Dow over the Nasdaq is a bet on proven strength and stability instead of potential growth.

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 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. 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, the best indicator for emini scalping Boeing and JPMorgan Chase fell slightly.

Understanding the Dow Jones Industrial Average (DJIA)

At the Dow’s inception, Charles Dow calculated the average by adding the prices of the 12 Dow component stocks and dividing by 12. Over time, there were additions and subtractions to the index that had to be accounted for, such as mergers and stock splits. At that point, a simple mean calculation no longer made sense. The Dow set two milestones in 2014 and set 39 closing records.

This is a list of the largest daily changes in the Dow Jones Industrial Average from 1896. Compare to the list of largest daily changes in the S&P 500 Index. The Dow Jones Industrial Average hit 10,000 for the first time in March 1999. The DJIA then hit 11,750 in January 2000, before falling to below 7,200 in October 2002 after the dot-com crash. Many critics argue that the Dow does not significantly represent the state of the U.S. economy as it consists of only 30 large-cap U.S. companies. They believe the forex & cfd trading on stocks indices oil gold by xm number of companies is too small and it neglects companies of different sizes.

SPDR Dow Jones Industrial Average ETF Trust

An intraday point gain is defined as the what investors are watching after spike in treasury yields difference between the opening price (which may or may not be the intraday low) and the intraday high. Such records that turned negative are also recorded in a separate list. On that day, it closed at 7,286.27, a 37.8% decline from its peak. No one knew if a new bull market had begun until the Dow hit a higher low on March 11, 2003, closing at 7,524.06.

Certain Third Party Funds that are available on Titan’s platform are interval funds. Investments in interval funds are highly speculative and subject to a lack of liquidity that is generally available in other types of investments. Actual investment return and principal value is likely to fluctuate and may depreciate in value when redeemed. Liquidity and distributions are not guaranteed, and are subject to availability at the discretion of the Third Party Fund. But the historic peak was delayed by strong economic news, an upturn in March inflation data and statements from Fed officials suggesting interest-rate cuts wouldn’t be coming soon. For example, if you’re looking for value and income over growth, you may not want to invest in a company like Salesforce at all.

List of largest daily changes in the Dow Jones Industrial Average

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. 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 level, the Dow continued to be affected by several recessionary periods and crises leading up to the 2009 downturn. The index closed above 18,000 on Dec. 23, and then closed its high for the year at 18,053.71 on Dec. 26.