The Dow Jones Industrial Average Index extended its impressive winning streak, closing positively for the twelfth consecutive session on Tuesday and reaching a peak of 35,438 points, the highest since April 21, 2022.
Such an exceptional 12-day winning streak for the Dow has only occurred twice in the post-World War II era. The first instance took place between November and December 1970, and the second was in January 1987.
Chart: Dow Marks 12th Straight Positive Session
Let’s take a closer look at how the Dow Jones reacted following those two record streaks:
- January 1987: After the Dow’s remarkable 12-day streak concluded on Jan. 20, 1987, it continued to surge, posting gains of 7.8% in the subsequent three months and an impressive 18% in the following six months.
Yet exactly a year later, the blue-chip market was 10.9% lower. The Dow faced a significant setback on Oct. 19, 1987, commonly known as Black Monday. This flash crash caused blue-chip stocks to plummet by over 20% in a single day.
- December 1970: Following the conclusion of the 12-day winning streak on December 10, 1970, the Dow continued its bull run and posted a 7.8% increase, identical to the pattern later seen in 1987, in the three months that followed. Six months later, it had rallied further by 14%, and a year later, it managed to gain 4.4%. Nevertheless, another downturn hit blue-chip stocks in October 1971, with a 6% decline during that month.
Dow’s 12-day winning streak
3-month return (%)
6-month return (%)
12-month return (%)
Will The Fed Make It or Break It?
Throughout the post-World War II era, the Dow Jones has never achieved a 13-day winning streak.
Investors are now eagerly anticipating the SPDR Dow Jones Industrial Average ETF (NYSE:DIA) performance on Wednesday, July 26, which coincides with the Federal Reserve’s Federal Open Market Committee (FOMC) meeting.
The market has already factored in a 25-basis point hike, bringing the fed funds rate to 5.25%-5.5%, marking the highest level in over two decades. However, the market’s reaction will largely depend on the signals given by Federal Reserve Chair Jerome Powell during his press conference.
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