The Dow Just Hit 40,000. Here’s Where Pros See Stocks Headed Next. (2024)

FAQs

Will the Dow hit $40,000 in 2024? ›

Traders work on the floor of the New York Stock Exchange on May 16, 2024. Wall Street is buoyed by hopes the Federal Reserve will pull back on its restrictive monetary policy after data showed inflation is beginning to ease.

The Dow Jones Industrial Average closed above the 40,000 mark Friday for the first time in its 139-year history. The blue-chip index initially crossed the key threshold early Thursday but ended that day lower.

Dizard, of PNC, said the stock market retains the capacity to rise between 5% and 8%. While Essaye, of Sevens Report Research, said the S&P 500 could increase another 3% or more. Meanwhile, Yardeni offered a longer-term view, saying he expects the major stock indexes to climb 50% by 2030.

That's according to Dow Jones Market Data, as Salesforce shares contribute a loss of 382 points to the Dow. Prior to this, the biggest one-day point detractor to the index was United Health Group on March 16, 2020, when it erased 318.76 points from the Dow.

The agency forecasted Dow Jones will close in 2024 at 38818 points. The updated Dow Jones price prediction for the next 5 years is for the index to trade around 45,000 points.

The Dow Jones Industrial Average (DJIA) hit its record high on May 16, 2024, reaching 40,051.05 points during intraday trading.

The widely quoted DJIA fell over half—51.1 percent—from a peak of 14,165 on October 9, 2007, to a low of 6,926 on March 5, 2009. While widely quoted, the Dow-Jones is an index of only thirty firms.

In November 1972, the Dow Jones Industrial Average climbs to 1,000 units for the first time in its history, a milestone 76 years in the making. On November 14, 1972, the Dow Jones Industrial Average (DJIA) crossed the 1,000-point mark, 21,652 days after its inception on October 7, 1896.

There are no set ages to get into or to get out of the stock market. While older clients may want to reduce their investing risk as they age, this doesn't necessarily mean they should be totally out of the stock market.

Should I be getting out of the stock market? ›

While holding or moving to cash might feel good mentally and help avoid short-term stock market volatility, it is unlikely to be wise over the long term. Once you cash out a stock that's dropped in price, you move from a paper loss to an actual loss.

We recommend a buy-and-hold strategy when it comes to investing. The stock market is like a roller coaster. There are going to be ups and there are going to be downs—the only people who get hurt are the ones who try to jump off before the ride is over.

The best day in the history of the index was October 6, 1931, when the index value increased by almost 15 percent - although it should be noted that this occured one day after the Dow Jones experienced its fourth-worst day of all time, dropping over 10.7 percent. The largest gain in points occurred on October 13, 2008.

Wall Street advanced into uncharted territory on Thursday, with the Dow Jones Industrial Average topping 40,000 for the first time after a blowout earnings report from Walmart cast a positive light on the U.S. economy.

Black Monday crash of 1987

Black Monday, as the day is now known, marks the biggest single-day decline in stock market history. The remainder of the month wasn't much better; by the start of November 1987, most of the major stock market indexes had lost more than 20% of their value.

According to analysts, DOW price target is 61.15 USD with a max estimate of 68.00 USD and a min estimate of 52.00 USD.

Going back 20 years - to include the impact of the Great Financial Crisis - the Dow's average gain is 10% per annum. If the Dow gains 7% on average annually moving forward, it reaches 116,200 early in 2040 - hitting Berger's mark exactly as he predicted.

Although the benchmark index has been trading below that historic level in the past few days, analysts at Yardeni Research maintain an optimistic stance about Dow's long-term prospects, reiterating their target of 60,000 by 2030.