In 2009, the DJIA had a rollercoaster ride, to say the least. The year began with a bang, as the index surged to a record high of 12,661.14 on April 26th.
The DJIA's performance was marked by a sharp decline in the first half of the year, with the index plummeting by 20.2% between January 1st and March 9th. This downturn was largely due to the global financial crisis.
However, the index staged a remarkable recovery in the second half of the year, with the DJIA gaining 18.8% between July 1st and December 31st. This turnaround was fueled by the Federal Reserve's decision to lower interest rates.
The DJIA's year-end closing value was 10,428.05, marking a 16.4% decline from its 2008 closing value.
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Market Performance in 2009
The Dow Jones Industrial Average, or DJIA, had a wild ride in 2009. The index was on its fourth straight week of losses in March, with the S&P 500 below 700 for the first time in 13 years.
Goldman Sachs predicted the S&P could fall as low as 400. This was a scary time for investors, to say the least.
The economy was in shambles, with billionaire T. Boone Pickens pulling back his plans to build a massive wind farm in Texas due to lack of investor interest. People were worried about social unrest if the market fell any lower.
However, there were a few optimistic signals. The federal government began sending stimulus dollars into the economy, which helped calm some nerves on Wall Street.
Citigroup's chief equity strategist thought the S&P would hit 1,000 by the end of 2009, while JPMorgan Chase's counterpart predicted a market high of 1,100. Both were surprisingly close to the actual finish line.
The S&P 500 ended the year near 1,120 after gaining more than 60%. This was a remarkable turnaround from the lows of March.
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Notable Dates in 2009
March 9, 2009, was a pivotal day in the financial markets, often referred to as the bottom of a months-long financial panic.
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The Dow was on its fourth straight week of losses, while the broader S&P 500 was below 700 for the first time in 13 years.
Goldman Sachs put out a research report warning the S&P could fall as low as 400.
Billionaire T. Boone Pickens had just announced he was pulling back his plans to build a massive wind farm in Texas due to lack of investor interest.
The federal government began sending the first stimulus dollars into the economy, providing a glimmer of hope for those on Wall Street.
Citigroup's chief equity strategist predicted the S&P would hit 1,000 by the end of 2009, while JPMorgan Chase's counterpart thought the market would hit 1,100.
The S&P finished the year near 1,120, gaining more than 60% after a year of turmoil.
Additional reading: Djia P E
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