Dow Jones sheds 300 points on Tuesday (2024)

  • Dow Jones backslides as other indexes gain ground.
  • DJIA gets dragged down by steep declines in large caps.
  • US data softened slightly on Tuesday, but not enough to appease rate cut hopes.

The Dow Jones Industrial Average (DJIA) shed weight on Tuesday, declining around 300 points as heavy-hitters like Home Depot Inc. (HD) and Walmart Inc. (WMT) dragged the large-industry index into the red. US equities are gaining ground in a lop-sided index performance, with losses concentrated in key securities on the Dow Jones.

The CB Consumer Confidence survey index declined to 100.4 in June, down from the previous print of 102.0 but falling just short of the expected decline to 100.0. The Richmond Fed’s Manufacturing Index dropped sharply to -10.0 in June, far below the forecast increase to 2.0 from the previous 0.0.

Financial markets broadly hopeful for softly-weakening economic figures from the US will be pivoting to watch for US Durable Goods, Gross Domestic Product (GDP), and Personal Consumption Expenditure Price Index (PCE) inflation figures all slated for release in the back half of the trading week beginning on Thursday. Tuesday’s mid-tier releases weren’t enough to spark firm market flows in either direction.

According to the CME’s FedWatch Tool, rate markets continue to price in around 66% odds of at least a quarter-point rate cut from the Federal Reserve (Fed) in September. Rate-cut-hungry investors are running out of room to hope that a downturn in US economic figures will spark an early rate cut from the Federal Open Market Committee (FOMC), while a too-sharp drop in US economic activity could spark a broad risk-off flight into safe havens like the US Dollar. On the other hand, a resurgence in US economic activity would likewise spoil investor sentiment, as rate cut hopes hinge on a slow trudge into a soft-landing recession within the US’ domestic economy.

Dow Jones news

The Dow Jones is getting dragged lower by downside in key securities on Tuesday. The DJIA is broadly in the red for the day, with only a third of the index’s securities in the green, but steep losses are concentrated in key stocks. Home Depot Inc. (HD) tumbled around 4% to $337.70 per share, followed by Walmart Inc. (WMT) which shed 2.78% and fell below $67.00 per share. Boeing Co. (BA) and Nike Inc. (NKE) were close behind, backsliding around 2.33% apiece to $53.35 and $95.11 per share, respectively.

Tuesday gainers remain notably thin, with Amazon.com Inc. (AMZN) and Apple Inc. (AAPL) climbing a little over 1% each. Amazon gained ground to $187.64 per share while Apple crossed above $210.00 per share after Monday’s decline below $208.00.

Dow Jones technical outlook

The Dow Jones is on pace to close firmly lower on Tuesday in the index’s worst single-day performance since late May as the index slumps three-quarters of one percent on the day. An intraday recovery is seeing limited effect, but is dragging Tuesday’s bids back up from the day’s bottom at 38,982.37.

Daily candlesticks continue to grind out chart paper just north of the 50-day Exponential Moving Average (EMA) at 38,864.49, with long-term technical support from the 200-day EMA at 37,455.71. Despite holding in bull country, the Dow Jones has struggled to make firm gains after a -5.15% backslide from all-time highs above 40,000.00 reached in mid-May.

Dow Jones five-minute chartDow Jones sheds 300 points on Tuesday (1)

Dow Jones daily chartDow Jones sheds 300 points on Tuesday (2)

Dow Jones FAQs

The Dow Jones Industrial Average, one of the oldest stock market indices in the world, is compiled of the 30 most traded stocks in the US. The index is price-weighted rather than weighted by capitalization. It is calculated by summing the prices of the constituent stocks and dividing them by a factor, currently 0.152. The index was founded by Charles Dow, who also founded the Wall Street Journal. In later years it has been criticized for not being broadly representative enough because it only tracks 30 conglomerates, unlike broader indices such as the S&P 500.

Many different factors drive the Dow Jones Industrial Average (DJIA). The aggregate performance of the component companies revealed in quarterly company earnings reports is the main one. US and global macroeconomic data also contributes as it impacts on investor sentiment. The level of interest rates, set by the Federal Reserve (Fed), also influences the DJIA as it affects the cost of credit, on which many corporations are heavily reliant. Therefore, inflation can be a major driver as well as other metrics which impact the Fed decisions.

Dow Theory is a method for identifying the primary trend of the stock market developed by Charles Dow. A key step is to compare the direction of the Dow Jones Industrial Average (DJIA) and the Dow Jones Transportation Average (DJTA) and only follow trends where both are moving in the same direction. Volume is a confirmatory criteria. The theory uses elements of peak and trough analysis. Dow’s theory posits three trend phases: accumulation, when smart money starts buying or selling; public participation, when the wider public joins in; and distribution, when the smart money exits.

There are a number of ways to trade the DJIA. One is to use ETFs which allow investors to trade the DJIA as a single security, rather than having to buy shares in all 30 constituent companies. A leading example is the SPDR Dow Jones Industrial Average ETF (DIA). DJIA futures contracts enable traders to speculate on the future value of the index and Options provide the right, but not the obligation, to buy or sell the index at a predetermined price in the future. Mutual funds enable investors to buy a share of a diversified portfolio of DJIA stocks thus providing exposure to the overall index.

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Dow Jones sheds 300 points on Tuesday (2024)

FAQs

What is the Dow Jones biggest daily gain? ›

Largest daily percentage gains
RankDateChange
%
11933-03-15+15.34
21931-10-06+14.87
31929-10-30+12.34
17 more rows

What are the points on the Dow Jones? ›

Points are not just used when discussing individual stocks; they're also often employed to refer to short-term moves in equity indexes, as in "the Dow Jones Industrial Average gained 20 points today" or "the S&P 500 is down 100 points for the week." Because these indexes are dealing with companies that are worth ...

On what date did the Dow Jones reach its all time peak 1929? ›

1921–1929: Bull market. Over the next eight years, the Dow increases nearly 500%, and eventually grows to a closing high of 381.17 on September 3, 1929. 1929–1949: Bear market. The stock market crash of 1929, or Black Tuesday, precedes, as well as causes the Great Depression.

What does the number of the Dow Jones mean? ›

The DJIA is simply a reflection of the weighted average of the stock prices and can be considered a price in itself. If the quote moves down by 80 points at the time of closing, it means you can get the stocks for $80.00 less (taking into account the divisor), and they are less valuable than the previous day.

Will the Dow hit $40,000? ›

Here's Where Pros See Stocks Headed Next. It took seven years for the Dow Jones Industrial Average to move from 20,000 to 40,000, and it had to bounce back from an April slump to cross the finish line.

What is the record all-time high for Dow Jones? ›

Key Takeaways. The Dow Jones Industrial Average (DJIA) hit its record high on May 16, 2024, reaching 40,051.05 points during intraday trading. The Dow's all-time high at market close stands at 39,908.00, reached on May 15, 2024.

What does 200 points mean in the stock market? ›

In the stock market, "points" typically refer to numerical units used to measure changes in a stock index or the price of a security. For example, if a stock index moves up by 50 points, it means the overall value of the index has increased by that amount.

What caused the Dow to drop 1000 points? ›

This week's downturn has been fueled by a range of factors, including earnings and stronger-than-expected economic data. Bonds have taken a particular hit as concerns about inflation mount and after a weak Treasury auction on Wednesday. The 10-year Treasury yield climbed to its highest level since late April.

Why is the Dow down 400 points? ›

U.S. stocks traded lower in the early afternoon on Monday, with the Dow Jones Industrial Average falling 377 points, or 1%, to about 38,302, according to FactSet data.

What was the worst stock market crash in history? ›

Few would dispute that the crash of 1929 was the worst in history. Not only did it produce the largest stock market decline; it also contributed to the Great Depression, an economic crisis that consumed virtually the entire decade of the 1930s.

What goes up when the stock market crashes? ›

Bonds may hold their value or increase, and individual bonds including Treasury's will continue to earn interest. Some alternative investments may increase in value. This could include gold and precious metals, real estate and others including fine art. There are no guarantees here either unfortunately.

What is the lowest the Djia has ever hit? ›

That said, we've never seen a fall as dramatic as the stock market crash of 1929, after which the Dow lost nearly 90% of its value over the course of three years. In 1932, it reached its all-time low of 41.22. The Dow's most volatile period in recent history took place during the Great Recession of 2007–2008.

What does 1 point on the Dow represent? ›

A 1 point change in the Dow Jones Industrial Average (DJIA) means that the sum of the prices of the 30 stocks changed by about $0.147. The exact numbers changes from time to time to account for stock splits and the like.

What is the nickname of the Dow Jones? ›

Often referred to as "the Dow," the DJIA is one of the most-watched stock indexes in the world, containing companies such as Apple, Boeing, Microsoft, and Coca-Cola.

What company has been on the Dow Jones the longest? ›

As of February 26, 2024, the components of the DJIA have changed 58 times since its beginning on May 26, 1896. General Electric had the longest presence on the index, beginning in the original index in 1896 and ending in 2018, but was dropped and re-added twice between 1898 and 1907.

What is the most a stock has gained in one day? ›

Winner: Amazon. One day after Meta's staggering loss, another tech giant set a new record for single-day gains. On January 4, 2022, Amazon (AMZN)'s market capitalization rose by $190 billion in a single day, beating out Apple's record of $179 billion a week earlier.

What stock went up 1000 percent in a day? ›

Even so, the gains posted by Ambrx Biopharma (AMAM) in Friday's session are unusual and particularly eye-catching. The stock soared to the tune of a hardly believable 1007% after the company announced pleasing results from the mid-stage testing of its breast cancer drug ARX788.

What stock has the highest gain today? ›

Day Gainers
SymbolName% Change
QSQuantumScape Corporation+30.50%
JOBYJoby Aviation, Inc.+19.65%
ASTHAstrana Health, Inc.+17.80%
LNTHLantheus Holdings, Inc.+16.42%
21 more rows

Has any penny stock made it big? ›

Sure, some penny stocks turned out to be massive success stories, like Apple, Ford Motor, and Monster Beverage. Find a similar success story like those top penny stocks, and you stand to make a fortune. However, you have to be willing to do the research to find them in a sea of duds.

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