Dow Jones Extends Winning Run To 11 Sessions: History Suggests Investors Should Stay Vigilant
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Zinger Key Points
  • The Dow posts longest winning streak since February 2017, recording its eleventh straight day in the green.
  • While the Dow had a good year in 2017, a comparable run in 1987 met an unfavorable end.

With the closing bell on Monday, the Dow Jones Industrial Average, as tracked by the SPDR Dow Jones Industrial Average ETF DIA, achieved its eleventh consecutive positive session, rising by 0.52% and breaking above 35,400 points.

This marks the Dow’s longest winning streak since February 2017, when it recorded 12 positive sessions between Feb. 9-17.

The Dow has only done better once, by surging for 13 straight sessions in January 1987.

Chart: Blue Chips Rise For Eleventh Day, Longest Winning Streak In Over 6 Years

Historical data paints a mixed picture.

  • After rising by nearly 5% in February 2017, the Dow fell slightly in March 2017. Between April 2017 and January 2018, the Dow recorded 10 straight months of gains.
  • Between September and October 2017, the Dow marked eight straight weeks of increases.
  • Between July and August 2017, the Dow posted a 10-day straight winning streak and nine-day streak in September.
  • In January 1987, the Dow Jones surged by 13.8%, setting the strongest monthly performance until October 2022, when it rose by 14.4%.
  • The Dow continued its ascent in February and March 1987 but experienced setbacks in April and May before resuming the rally during the summer.
  • Between September and October 1987, the blue-chip index plummeted by over 25% due to the infamous flash crash on Oct. 19, 1987, when the Dow lost 20% in a single session.
  • The year 1987 closed with the Dow up by only 2.3%, significantly lower than its historical annual average performance.

Read now: Fed Meeting In Focus: Will Wednesday’s Interest Rate Call Be The Last Hike Of The Cycle?

Photo via Shutterstock.

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