Dow Jones index’s streak is the longest since 1987
Wall Street notched more milestones Monday as the Dow Jones industrial average closed at a record high for the 12th consecutive time, the longest winning streak for the 30-company average in 30 years.
The Standard & Poor’s 500 index, the benchmark favored by professional investors, also closed at a record high.
The latest push into the record books came as stocks eked out tiny gains, led by energy stocks, which climbed as the price of crude oil rose.
Many investors were taking a wait-and-see approach ahead of President Donald Trump’s speech to Congress on Tuesday, hoping for details of promised tax cuts and infrastructure spending.
The last time the Dow posted a longer winning streak was in January 1987, when the average rose for 13 days in a row. That streak translated into a gain of 11 percent for the Dow. Nine months later, on Oct. 19, 1987, the Dow plummeted more than 500 points, or about 22 percent, on what became known as Black Monday.
Just because the Dow is on another lengthy winning streak doesn’t mean a similar market slump is in the cards now, noted Ryan Detrick, a market strategist for LPL Financial.
The Dow went on to gain another 30 percent in the months after the 13-day streak in January 1987. By comparison, the Dow is now up about 5.4 percent this year, so there’s a long way to go before the market becomes as stretched as it was 30 years ago, Detrick said.