The Dow Jones Industrial Average breached 17,000 for the first time in its history today. The index has seen exponential growth since the bull market began in 1982, interrupted by three major crashes —the most dramatic of which, on Oct. 19, 1987, had the least long-term impact.
The Dow first touched the 1,000 mark on Jan. 18, 1966, but could not maintain that level as the market hit a long bear consolidation phase that lasted until 1982. It wasn’t until after 1982 that the market could remain above the century mark.
Twenty-one years after first touching 1,000, the Dow hit 2,000 on Jan. 7, 1987. In July 1990, the Dow hit 3,000. It would take nearly five years for the Dow to reach 4,000 in February 1995, but by this time the go-go 90s were under way and it was a straight shot up until the dot-com bubble imploded in 2000.
Equities rebounded from there, but one bubble led to another and in 2008 the housing sector crashed along with the Dow in the credit crisis, leading to the “Great Recession.”
While the economy and job market have not rebounded to pre-crisis levels, stocks sure have with the help of the Federal Reserve.
We thought it would be fun to see what was going on when the Dow hit each 1000-point milestone.