The US dollar index, which measures the dollar’s strength against six major foreign currencies, gained 0.45%. The dollar index was set for its biggest daily gain in nearly two weeks. The DJIA has seen several important moments throughout its long history. Established in 1896 by Charles Dow and Edward Jones, the index originally included just 12 industrial companies.
- The company expects to post quarterly adjusted EPS of $5.50, which it said is “modestly below” prior expectations.
- The Dow tracks 30 large, publicly owned blue-chip companies trading on the New York Stock Exchange and the Nasdaq.
- Musk on Saturday announced the formation of the «America Party» after a July 4 poll on his X platform indicated 65% of responders supported the move.
- By understanding the factors that drive the Dow’s growth, staying informed about economic indicators, and managing risk through diversification, investors can navigate the stock market’s highs and lows with confidence.
- Shares of Intel, IBM and Home Depot helped drive the record-setting rally.
recession
In a note to clients Sunday, Deutsche Bank raised concerns about “the macro-sensitive nature” of Chime’s core demographic and a competitive environment for companies offering an alternative to traditional banks. Morgan Stanley said Chime has shown a “proven ability” to become the primary banking account for its customers, and broaden its user base. Bitcoin was at $108,100 in late-afternoon trading, down from an overnight high of $109,700. The digital currency isn’t far from its all-time high of around $112,000. The Nasdaq composite gained 0.5% and set its own all-time high.
Record Highs Set in 2019
That’s above the Dow Jones forecast from economists for 110,000 and the upwardly revised 144,000 in May. The unemployment rate also fell to 4.1%, while economists had projected an increase to 4.3%. 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.
A long list of businesses from carmakers to retailers basics of forex trading for beginners have warned that higher import taxes will likely hurt their revenues and profits. Investors are also monitoring potential progress on trade conflicts between the U.S. and the world, specifically with China. The U.S. and China have signed a trade deal that will make it easier for American firms to obtain magnets and rare earth minerals from China that are critical to manufacturing and microchip production, U.S. The gains on Friday were broad, with nearly every sector within the S&P 500 rising.
Records were broken in 2018
The Dow witnessed a sharp decline in the end of November over fears of inflation and the COVID-19 pandemic, before resuming its quest to break more all-time high milestones. Treasury Secretary Scott Bessent said this morning in an interview with CNBC that several trade deals are expected in the next few days. The so-called reciprocal tariffs, which roiled financial markets in early April when they were first announced, had been expected to go back into effect on July 9 at the end of a 90-day pause.
The 1960 Recession
Centene stock tumbled last week, as did Molina’s, which lost nearly a fifth of its value. ‘“The short-term earnings pressure we are experiencing results from what we believe to be a temporary dislocation between premium rates and medical cost trend which has recently accelerated,” Zubretsky said. Nothing has changed Molina’s long-term outlook, including the budget bill signed by President Donald Trump on Friday, he said. Acting GSA Administrator Stephen Ehikian called it a «landmark agreement» that was a major step in the administration’s effort to acquire «cutting-edge commercial technologies to modernize federal systems at scale.» Investors will be tracking how the stock performs during this year’s Prime Day event, which starts Tuesday and has been extended from two days to four after sales at last year’s event hit a record.
The bout of inflation that followed the COVID-19 pandemic led to another sharp sell-off in 2022. Between Jan. 7, 2022, and Sept. 30, 2022, the Dow declined about 21% from 36,231.66 to 28,725.51. Since the Great Depression, 2007 to 2008 has been the most dramatic period for the DJIA. The market fell more than 50% in just a year and a half because of subprime mortgage and credit crisis that kicked off the Great Recession. Perhaps the most infamous trough was during the Great Depression, in which the Dow lost about 90% of its value over three years. It hit a low of 41.22 in 1932 (about 908 points, inflation-adjusted).
The Recession of 1980-1982
Confidence that a recession could be averted continued into 2024. The Dow climbed above 38,000 in January 2024 and reached 40,000 by May. The index peaked again in July, almost reaching 42,000, then rallied in September when the Fed started cutting interest rates for the first time since 2020. By Jan. 20, it closed at 15,766.74, as investors panicked over plummeting oil prices, the devaluation of the yuan, and turmoil in China’s stock market. Of the 26 records set that year, 17 occurred after the presidential election.
Economists still expect at least two rate cuts before the end of the year. The Fed’s rate-cutting path has come under increased scrutiny in recent weeks as Trump has continued a tirade against Fed Chair Jerome Powell, lashing out at him for holding rates steady. Some Fed officials in recent weeks had signaled an openness to cutting rates in July.
- When the economy is thriving, companies tend to perform well, leading to higher stock prices and, ultimately, an increase in the Dow.
- A November streak occurred after Donald Trump’s presidential win on Nov. 8.
- The labor market continues to prove resilient, which gives the Fed more time to hold rates steady and focus on how inflation is developing.
The Dow suffered a market correction between August 2015 and April 19, 2016, leading to a 2016 downturn. It began on Jan. 4, when the Dow closed 160 points lower as investors worried about a slowdown in China’s economic growth. All these events created a lot of uncertainty for investors and the Dow bore the brunt of it, falling into a bear market in September 2022.
«Thursday’s jobs report was stronger than expected, which shows that the resiliency we have been seeing in the economy over the past several months is still intact,» Laut wrote in a note. «Investor focus is shifting back to the economy’s underlying strength, with less emphasis on the Fed.» The jump followed a strong June jobs report, which showed that the US added more jobs than economists originally expected last month, while also revising May’s data upward. The Fed cut interest rates twice in late 2024 following a historic series of rate hikes to cool inflation. The PCE was as high as 7.2% in 2022 while the more commonly used consumer price index hit 9.1%.
All three major U.S. averages closed out the week in positive territory. The S&P 500 and Nasdaq Composite were up 1.7% and 1.6% week to date, respectively, while the Dow posted a 2.3% gain for the period. 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. Tesla (TSLA) shares fell sharply in early trading after CEO Elon Musk announced he would form a new political party in an escalation of his feud with President Donald Trump. The revision comes after managed-care provider Centene (CNC) withdrew its full-year outlook last week amid slower-than-expected growth.