Dow Extends Winning Streak To Record 12 Days, Reaches Highest Level Since April

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. BURUL CHUKRUT/GETTY IMAGES 

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

Chart: Dow Marks 12th Straight Positive Session. GETTY IMAGES 

Let’s take a closer look at how the Dow Jones reacted following those two record streaks:

1. 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.
    
2. 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 (%)

January 1987

7.8

18

-10.9

December 1970

7.8

14

4.4

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.

Produced in association with Benzinga