That means companies with higher stock prices move the Dow more, even if they aren’t the largest by market value. The DJIA is a stock index that tracks 30 major U.S. companies, known as the “Dow 30.” It’s one of the best-known ways to measure the U.S. stock market. 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. While you can’t directly buy shares in the market index, you can invest in the DJIA through index funds and exchange-traded funds (ETFs) such as the SPDR Dow Jones Industrial Average ETF Trust (DIA).
FAQ – Highest Dow Jones & Record Highs (August
In the autumn, it began to consistently close above 35,000 points, and by the last week in December 2021, it surpassed 36,000 points. The longest bull market in history lasted about 11 years, starting in March 2009 and ending in February 2020. See the top 10 highest closing values in Dow Jones history, including the record-breaking 45,014.04 set on December 4, 2024. When people talk about “the Dow,” they mean the Dow Jones Industrial Average—a group of top blue-chip stocks like Apple, Microsoft, and Coca-Cola, all traded on big U.S. exchanges like the NYSE. The DJIA shows how America’s biggest companies are performing and is a quick way to check the pulse of the economy.
The Dow Jones hitting 45,631.74 in August 2025 shows how strong U.S. markets remain, with tech earnings, lower inflation, and Fed policy fueling record highs. For long-term investors, these milestones are reminders to stay disciplined. The Dow’s new high above 45,600 in August 2025 is impressive, but it’s part of a bigger global rally. The S&P 500, Nasdaq, Nikkei, and DAX all set records in 2025 too, fueled by strong tech earnings and hopes of lower rates.
The highest intraday level was just above 45,100 on December 4, 2024, before closing at 45,014.04. The Dow Jones always bounces back—even after historic crashes. Every bear market in U.S. history has been followed by a new record high.
While short-term pullbacks are always possible, history shows the Dow has reached new highs after every major correction. With inflation cooling and the Fed signaling possible rate cuts, analysts expect more record-setting moves through late 2025. For active traders, record-breaking markets are full of opportunity. At MasterFunders, you can trade with firm capital instead of your own, scale accounts up to $1M+, and get payouts in as little as 7 days. Record highs usually follow strong earnings, low interest rates, tech rallies, and economic growth.
- Through much of 2022 and 2023, investors were cautious and bearish about equity markets as inflation rocketed.
- At MasterFunders, you can trade with firm capital instead of your own, scale accounts up to $1M+, and get payouts in as little as 7 days.
- See the top 10 highest closing values in Dow Jones history, including the record-breaking 45,014.04 set on December 4, 2024.
- The Dow climbed above 38,000 in January 2024 and reached 40,000 by May.
- The DJIA shows how America’s biggest companies are performing and is a quick way to check the pulse of the economy.
What causes the Dow to reach new highs?
- As such, point moves are a way to measure the relative change in the index’s value.
- Tech-heavy Nasdaq leads global markets thanks to strong performance in AI and semiconductor stocks.
- Confidence that a recession could be averted continued into 2024.
- For active traders, record-breaking markets are full of opportunity.
- Record highs are driven by a mix of economic growth, lower inflation, strong corporate earnings, and investor confidence.
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. The Dow tracks 30 large, publicly owned blue-chip companies trading on the New York Stock Exchange and the Nasdaq. The selection is not based on strict quantitative criteria but rather on the decisions of the editors of the Wall Street Journal. Companies are chosen based on their reputation, growth, and relevance to the economy, with the aim of reflecting the overall health and trends of the industrial sector of the U.S. economy.
Top 10 Highest Dow Jones Closing Values in History
To account for stock splits and changes in the lineup, the Dow uses a special number called the index divisor. This lets the index stay consistent even as companies come and go. These changes are not done often to ensure the index’s stability and continuity. The largest single-day drop, percentage-wise, that the Dow has had occurred when the market crashed on Oct. 19, 1987, Black Monday.
How Do I Invest in the Dow Jones Industrial Average?
The recession from 1973 to 1975 also led to a falloff for the Dow, which dropped 45% from its 1,051 peak in 1973 to just under 600 in 1974 (about 7,486 and 3,871 points, respectively, inflation-adjusted). The Dow also lost 26.5% during the Cuban missile crisis of 1962. 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 green energy stocks time since 2020.
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The August 2025 record is just the latest proof of that resilience. The Dow Jones Industrial Average (DJIA) just set a new record close of 45,631.74 on August 22, 2025. Since the Dow tracks just 30 large-cap U.S. companies, some critics argue that it is too narrow to represent the state of the overall U.S. economy. Given its large-cap focus, the roster of companies included in the Dow fails to include companies of other sizes.
Chart: Top 10 Dow Jones All-Time Closing Highs
By the end of 2023, the previous high, registered in January 2022, had been surpassed, and the 37,000 mark had been breached. The DJIA is a price-weighted stock index made up of 30 major U.S. companies. It’s one of the most-watched indicators of the stock market’s overall health.
Quick Table: DJIA vs. S&P 500 vs. Nasdaq Composite — 2025 YTD Returns
Central bank policy and investor optimism also play big roles. Intraday highs show the peak value during the trading session, but the “record close” at 45,631.74 on August 22 is the official all-time high most investors track. By mid-2025, the S&P 500 reached 5,680, and the Nasdaq hit 19,810—driven mainly by tech stocks. Unlike the S&P 500 or Nasdaq (which are weighted by company size), the Dow uses a special math trick called the “index divisor.” This lets it account for stock splits and changes in the Dow 30 lineup. Stocks with higher prices (like UnitedHealth or Goldman Sachs) have more impact on the index than lower-priced stocks, even if they’re smaller companies.
Join MasterFunders today and start your trading career with real backing. The close was just shy of a previous record close of 40,003 set on May 17. The Dow posted its all-time high during in December 2024, peaking at over 45,000 points. The new highs reflected optimism that the Federal Reserve would continue to cut interest rates and that the incoming administration would promote business growth. Because of the price-weighted calculation method, a $1 change in the price of a stock in the DJIA doesn’t equate to one point in the index since that depends on the Dow divisor at the time.
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). Journalist Charles Dow and his business partner, Edward Jones, established the Dow Jones Industrial Average in 1896 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 number, 30, in 1928.
