Weekly development Dow Jones Industrial Average Index 2020-2024

The Dow Jones Industrial Average (DJIA) index dropped around 8,000 points in the four weeks from February 12 to March 11, 2020, but has since recovered and peaked at 43,077.7 points as of October 13, 2024. In February 2020 - just prior to the global coronavirus (COVID-19) pandemic, the DJIA index stood at a little over 29,000 points.

U.S. markets suffer as virus spreads

The COVID-19 pandemic triggered a turbulent period for stock markets – the S&P 500 and Nasdaq Composite also recorded dramatic drops. At the start of February, some analysts remained optimistic that the outbreak would ease. However, the increased spread of the virus started to hit investor confidence, prompting a record plunge in the stock markets. The Dow dropped by more than 3,500 points in the week from February 21 to February 28, which was a fall of 12.4 percent – its worst percentage loss in a week since October 2008.

Stock markets offer valuable economic insights

The Dow Jones Industrial Average is a stock market index that monitors the share prices of the 30 largest companies in the United States. By studying the performance of the listed companies, analysts can gauge the strength of the domestic economy. If investors are confident in a company’s future, they will buy its stocks. The uncertainty of the coronavirus sparked fears of an economic crisis, and many traders decided that investment during the pandemic was too risky.