/Dow Plummets Below 30,000

Dow Plummets Below 30,000

The Dow Jones Industrial Average fell below 30,000 on Thursday for the first time since January 2021 amid dismal inflation news and an aggressive interest rate hike from the Federal Reserve.

The Dow — a stock market index that tracks 30 large public companies trading on American exchanges — reached 30,000 for the first time at the end of 2020 under former President Donald Trump. When President Joe Biden entered office on January 20, 2021, the Dow closed at slightly under 31,000 amid the rebound from COVID-19 and the lockdown-induced recession.

After steadily increasing to nearly 37,000 through 2021, the Dow has since plummeted due to several economic headaches — including record inflation rates, persistent supply chain bottlenecks, and the Russian invasion of Ukraine. On Thursday afternoon, the index sank below 29,900 — reflecting a roughly 19% plummet from its peak in early 2022.

Most recently, the Consumer Price Index (CPI) increased 8.6% year-over-year as of May, surpassing economists’ expectations. The Producer Price Index (PPI), which monitors inflation for wholesalers, increased 10.8% over the same period.

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