Each day, Benzinga takes a look back at a notable market-related moment that occurred on this date.
What Happened? On this day in 1987, the Dow gained 100 points in a week for the first time.
Where The Market Was: The Dow Jones Industrial Average closed at 2,700.57 and the S&P 500 traded at 334.11.
What Else Was Going On In The World? In 1987, Aretha Franklin was inducted into the Rock and Roll Hall of Fame. Square released the first “Final Fantasy” video game in Japan. The average price of a new house was $92,000.
Dow’s Big Week: On Aug. 17, 1987, the Dow closed above 2,700 for the first time in history just one week after it eclipsed 2,600 for the first time. The 100-point move represented a 3.8% move in a single week, and it was the first time the Dow had logged a 100-point one-week gain.
The following week on Aug. 26, 1987, the Dow closed at an all-time high of 2,722.42. Less than two months later, the U.S. market was hit by the infamous “Black Monday” crash during which the Dow lost 508 points (22.6%) in a single day.
After registering more than a 40% year-to-date gain as of mid-August, the Dow would finish 1987 up just 2.2% on the year. The Dow didn’t make another all-time high until August 1989.
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