Wall Street was cheering on Friday after stocks rose to record highs, with the Dow Jones Industrial Average breaking 29,000 for the first time in its history. However, the victory was short lived, as stocks then tumbled around 100 points by the afternoon. The volatility comes in response to a number of headlines that have made investors uneasy, including a jobs report that was weaker than expected, as well as impeachment drama and tensions with Iran.
According to CNN, the Dow Jones jumped 44 points — 0.2 percent — on Friday, leading the Industrial Average to touch 29,000 for the first time since its inception. The Dow topped out at 29,009 before falling again quite quickly.
The stock market is doing well due to the high-performing healthcare and tech sectors. In particular, Pfizer shares rose 1.7 percent, which has been instrumental in the Dow’s record-breaking growth. In general, healthcare stocks rose an average of 0.5 percent. Tech stocks performed similarly.
The above-29,000 average wouldn’t last, however. Once news hit the market that the latest jobs report showed underwhelming numbers, stocks began to fall, tumbling around 105 points.
The report stated the U.S. economy had added 145,000 jobs in December. Experts had hoped that number would have been closer to 160,000, as reported by CNBC.
“The December jobs report was a little softer than expected but not so much so as to stoke big worries about the US consumer and the health of the overall economy,” said Alec Young, director of global markets research at FTSE Russell to CNBC.
“Although both readings were slightly below expectations and the recent trend, neither is overly alarming by itself,” he added.
Analysts believe the 29,000 threshold will be crossed again soon, however. They have been buoyed by next week’s projected signing of a “Phase One” trade deal between the U.S. and China.
The new record of 29,000 comes as the stock market continues to make gains in the new year, continuing a trend of strength that has been seen over the past few years. According to The Balance, the Dow has made a staggering 22 record closes in 2019 alone. The United States is also in the longest running bull market in U.S. history.
The Dow first closed above 27,000 on July 10, 2019. It then raced to break 28,000 on November 15 of the same year. These gains were in response to reports of a trade agreement between the U.S. and China. However, negotiations between the two nations fell apart later that month.
2018 was also a strong year for the market, with 15 closing records. The average broke both 25,000 and 26,000 in January 2018 alone. That year also set a record for the largest daily point gain in history in December, as covered by The Inquisitr.
Financial experts will no doubt be eyeing the Dow to see if the mammoth 30,000 record can be achieved. The Dow first broke 20,000 in January 2017 in the aftermath of President Donald Trump’s election.
Eighteen years before that, the Dow first broke the 10,000 barrier on March 29, 1999, causing significant excitement.