Dow Jones tracks thirty popular companies in the US that trade on the New York Stock Exchange and Nasdaq. Here we will discuss the surges and drops in the history of Dow Jones. The Dow Jones all-time high close value in the stock market was on May 15, 2024, and the highest value was on May 16, 2024, when it crossed 40,000 for the first time in history.
The causes of the soaring price value at Dow Jones are economic recovery and interest rate cuts. The value of Dow Jones reached 40,051.05 points in intraday trading on May 16, 2024, and the market close value on May 15th was 39,908. Dow Jones is one of the most popular equity indexes in the US stock market.
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History of Dow Jones
Dow Jones Industrial Average was established by Charles Dow and Edward Jones in 1896 with popular twelve industrial companies. The number of companies in the Dow Jones Industrial Average rose to 20 in the year 1916 and now the number of companies in the Dow Jones Industrial sector is 30. The number of companies in Dow Jones Industrial Sector is thirty since 1928. Since Dow Jones started in the year 1896 it is one of the most tracked equity indexes in the US stock market.
Surges of Dow Jones
In the 2010s, there was a consistent high in the value of the Dow Jones Industrial Average. In 2019 the industrial talks with China helped the Dow Jones Industrial Average to reach new heights. The Dow Jones Industrial Average had high market closes 22 times in 2019.
The Dow Jones Industrial Average hit 30,000 in 2020. The US market was unstable during the presidential elections in 2020 but when the US president-elect Biden became president of the US in 2020 the stock saw a surge. The Dow Jones Industrial Average hit 34,200.67 in the share market in April 16.2021.
By the end of 2023, Dow Jones hit 37,000 points, and during January 2024 Dow Jones crossed 38000 points. The Dow Jones Industrial Average touched an all-time high on May 16 2024 passing the 40,000 mark.
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Drops of Dow Jones
There have been markable drops in the value of the Dow Jones in the history of the stock market despite the surge in the Dow Jones in recent times. During the great depression in 1932, the Dow Jones lost ninety percent of its value and reached 41.22.
During the 2007- 2008 period, the market lost about 50% of its value because of the credit crisis which led to the Great Recession. The COVID-19 pandemic also led to a decline in the value of the Dow Jones Industrial Average in 2022. During the recession period from 1973 to 1975 Dow Jones Industrial average value declined by 45 %.
Conclusion
The Dow Jones Industrial Average established in 1896 tracks 30 blue-chip industrial companies in the US. Here we have discussed the Dow Jones significant surges and declines in the New York Stock Exchange and its timeline. The selection of the companies in Dow Jones is based on the decisions of the editors of the Wall Street Journal.
