Previously, the Dow had fallen from 11,723 in January 2000 to 9,389 in March 2001, dropping 20% (from 20,520 to 16,434 points, inflation-adjusted). 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. 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.

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• The Dow Jones Industrial Average (DJIA) made history by surpassing 40,000 points for the first time on May 16, 2024, hitting an intraday peak of 40,051.05 points.
• Tesla share price surged 4.68%, Nvidia stock price gained 1.81%, and Advanced Micro Devices shares rose 2.63%.
• First, the conflict between Russia and Ukraine saw gas prices spike sharply.

Donald Trump’s presidency saw some of the most dramatic stock market records in history—both soaring highs and sharp drops. Traders who followed market trends during his time in office saw huge opportunities as the S&P 500, NASDAQ, and Dow Jones reached new milestones, only to face extreme volatility in times of uncertainty. Whether it was corporate tax cuts, trade wars, or the pandemic crash, understanding these key moments can help traders recognize how government policies shape market movement.

Traders who stayed disciplined through the volatility saw big rewards by following key market trends. I’m an experienced financial analyst with a specialization in stock market indices, including the Dow Jones Industrial Average (DJIA). My expertise is demonstrated through years of analyzing market trends, economic indicators, and historical stop out data.

Kimberly Amadeo has 20 years of experience in economic analysis and business strategy. These changes are not done often to ensure the index’s stability and continuity. Since the Great Depression, 2007 to 2008 has been the most dramatic period for the DJIA. The market fell more than 50% in online marketing trading just a year and a half because of subprime mortgage and credit crisis that kicked off the Great Recession. For a look at all of today’s economic events, check out our economic calendar. Please bear with us as we address this and restore your personalized lists.

1991 Recession

The index breached 26,000 on Jan. 17, then continued on to set 15 closing records in the rest of 2018. On July 3, the Dow hit a new high when the Trump administration announced it would resume trade negotiations with China, averting additional tariffs (taxes on imports). Crude oil prices traded higher after the US Fed policy, while data showed robust fuel consumption. Brent crude oil rose 0.45% to $71.10 a barrel, while the US West Texas Intermediate (WTI) crude futures gained 0.22% to $67.31. Gold prices surged to a record high after the US Federal Reserve policy. Bullion reached an all-time high of $3,055.31 per ounce earlier in the session.

These actions artificially raised their earnings per share and the prices of their remaining outstanding stocks (stocks which are still held by shareholders). That correction was more than 16% lower than its all-time high set in May of the same year, putting the index into a correction but not a bear market. Investors worried that China’s yuan devaluation and the uncertainty over the Fed’s rate increase would push the index further downward. 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.

Crude Oil Prices

• For a look at all of today’s economic events, check out our economic calendar.
• Trump’s market saw rapid rallies and sharp corrections, while previous administrations faced their own unique challenges.
• The average closed at 2,999.75 on Monday, July 16, 1990, and closed unchanged the following day;17 however, it would take until April 17 of the next year for the Dow to finally close above 3,000.
• Find out about the record-breaking highs of the DJIA and the events behind its growth.

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.

(30 record closes)

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.

Traders who followed money flow trends and capital allocation strategies found key opportunities in financial and consumer-related stocks. By 2018, volatility returned as Trump’s trade war with China escalated. The S&P 500 hit record highs in September, but by December, it had fallen nearly 20%—just short of bear market territory. Interest rate hikes by the Federal Reserve and fears of an economic slowdown added to market uncertainty. One of the biggest stock market trends during Trump’s first year was the surge in stocks that aligned with his economic policies.

Record Highs Set in 2022

Infrastructure-related companies, defense contractors, and financial institutions all saw big gains as investors anticipated increased government spending and deregulation. Tech stocks, meanwhile, had a mixed year—some soared on continued innovation, while others faced pressure from potential regulatory scrutiny. Traders who followed these sector trends found opportunities in stocks that fit Trump’s agenda. If you’re curious about stocks that benefited the most from his policies, check out this list of top Trump stocks. Before Trump officially took office, the stock market reacted strongly to his election victory in November 2016.

“While some consolidation is possible, the overall sentiment is likely to remain positive, favoring a ‘buy on dips’ approach. We are witnessing rotational participation across key sectors, with banking, financials, metals, and energy taking the lead. Traders should position themselves accordingly and remain selective in the broader market,” said Ajit Mishra – SVP, Research, Religare Broking Ltd. The S&P 500 closed at 5,521.52, down 10.1% from its record high of 6,144.15 on February 19 and notching its first correction in over a year.

Record Highs Set in 2013

To understand the real factors driving market highs beyond politics, it’s essential to use a trading platform with real-time data. 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. Included in all of the Dow Jones historical charts are the high, low, and closing prices for each quarter • presidential terms • recessions and periods of expansion • and geo-political events.

15This was the Dow’s close at the peak on October 9, 2007, before the financial crisis of 2007–2008. 14This was the Dow’s close at the peak on January 14, 2000, before the 1 year sobriety gift dot-com crash. After reaching an intra-day low of 40.56 on July 8, 1932, the Dow started to recover with a major setback at the start of World War II.

Real estate and hospitality stocks also reacted to Trump’s policies, though in different ways. Lower corporate taxes helped real estate investment trusts (REITs) and property developers, while changes in trade agreements affected the costs of construction materials. On the other hand, hospitality stocks, including casinos and hotels, saw swings based on economic conditions and travel trends. Investors who kept an eye on Trump’s business-friendly policies often looked for stocks that could benefit in the long run. For a look at stocks tied to Trump’s influence, check out this Donald Trump stock portfolio. Stock market performance under a president depends on many factors—economic conditions, Federal Reserve policies, and global events all play a role.

Correction is a Wall Street term for falling more than 10% from a recent high. His tweets often moved markets, especially on trade policy and Federal Reserve actions. The S&P 500’s bull market continued for nearly 11 years, fueled by earnings growth and liquidity. According to Politico, the Dow fell to its lowest point during the Great Depression. The Dow bottomed out at an intraday low of 40.56 and a closing level of at 41.22 on July 8, 1932. At the time, the Dow’s average included the stock performance of just 12 components, none of which are still included in the index.

Both of those factors sent inflation in the U.S. soaring to record levels not seen in over 40 years. The Dow started 2022 with a flourish, breaking closing records in the first two trading days of the year. The most recent record closing occurred on Jan. 4, when the index closed at 36,799.65, blowing past the all-time high closing of 36,585.06 it had just a day before. 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. 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.

10This was the Dow’s close at the peak of August 25, 1987 before the Black Monday stock market crash. Stock market gains since the 2008 financial crisis were mediocre in volume. Only three days traded more than 200 million shares, a level similar to the late 1990s. Of the 26 records set that year, 17 occurred after the presidential election. The index’s 2016 closing high was 19,974.62, set on Dec. 20, 2016. It hit two of them in the first few weeks in January, closing above 25,000 on Jan. 4.