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 (NYSE:SQ) 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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