Market Overview

This Day In Market History: Dow 200

This Day In Market History: Dow 200

Each day, Benzinga will take a look back at a notable market-related moment that happened on this date.

What Happened?

On this day 90 years ago, the Dow Jones Industrial Average broke 200 for the first time.

Where Was The Market?

The S&P 500 finished December 1927 at 17.53.

What Else Was Going On In The World?

In 1927, Charles Lindbergh made the first solo flight across the Atlantic Ocean when he piloted the Spirit of St. Louis from New York to Paris. Henry Ford unveiled the Model A, which had seven different body types, four different colors and a price range of between $500 and $1,200.

Breaking 200

It took the Dow 21 years to get from 100 in 1906 to 200 by year’s end 1927. By historical standards, the two-decade stretch produced a lackluster 3.2 percent compound annual return for investors. World War I and a major flu pandemic weighed on the U.S. economy throughout much of the 1910s, but the Dow got back on track by setting new all-time highs each year from 1924 to 1929.

Incredibly, after taking more than two decades to double from 100 to 200, the Dow would nearly double again within three years time, climbing as high as 381.17 by Sept. 3, 1929. The Black Tuesday crash that is often referenced as the beginning of the Great Depression would take place less than two months later, ending the decade of economic prosperity.

Following the great stock market crash of 1929, the Dow would not get back to the 200 level again until Jan. 11, 1946.

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