Dow Reaches New Heights: What Does It Mean?
At the end of February, the Dow Jones Industrial Average closed just shy of its all-time high. Less than a week later, the index fulfilled its promise, trading as high as 14,286.37 to break both its record close of 14,164.53, on Oct. 9, 2007, and its intraday high of 14,198.10, reached around the same time. The index closed at a new high of 14,253.77.
The S&P 500 and the Nasdaq also rallied. The S&P 500 was within 2 percent of hitting its record close of 1,565.15, also achieved in October 2007. Stocks were boosted by positive economic reports from abroad - namely Europe and China - and an Institute for Supply Management reading that beat expectations.
The new record caps a long comeback for the Dow that started in 2007 and is more than double the March 2009 low of 6,547.05. While this is an exciting milestone in the country's economic recovery, it's important to remember that it's just a one-day number. We encourage you to remain focused on your long-term goals.
Please call if you want to discuss the markets, your portfolio or your overall financial plan. We look forward to hearing from you.
Past performance may not be indicative of future results. The Dow Jones Industrial Average is an unmanaged index of 30 widely held stocks. The NASDAQ Composite Index is an unmanaged index of all common stocks listed on the NASDAQ National Stock Market. The S&P 500 is an unmanaged index of 500 widely held stocks. Investors cannot invest directly in an index. Performance mentioned does not include fees which would reduce an investor's return.