by Gary Alexander
February 10, 2026
Last Friday, the Dow Jones Industrial Average broke the 50,000 barrier for the first time. Will the Dow just sail on toward 60,000, or will it take some time to digest the stability of this new “floor” at 50,000?
How well I remember the first time the Dow Industrials broke 1,000, back in my college years when I was actively studying economics and markets for the first time. Alas, 1966 was the start of a 16-year struggle.
Here’s the story of those 16 years it took for the Dow to surpass its psychological 1,000 barrier for good:
- 60-years ago yesterday – February 9, 1966 – the Dow first topped 1,000, intra-day, but it then closed at 995 by the end of the day, so we had to wait until 1972 for the first close over 1,000, as the Dow careened down to 631 in 1970 before making its second assault at the four-digit barrier in late 1972.
- The Dow closed above 1,000 for 48-straight trading days from November 14, 1972, to January 24, 1973, peaking at 1,051.7 on January 11, 1973, before falling to a lower low of 577.60 in late 1974.
- Eight-years later, the Dow crossed 1,000 for 10-straight days in April 1981, falling to 777 in 1982.
- FINALLY, on November 23, 1982, the Dow closed below 1,000 for the final-time, at 990.99.
So, it took the Dow index nearly 17-years from its first flirtation with 1,000 before topping 1,000 for good – and this was during a time when inflation more than tripled, so 1,000 in 1982 was like 3,000 in 1965.
Graphs are for illustrative and discussion purposes only. Please read important disclosures at the end of this commentary.
I have worked full-time in the financial newsletter business since 1980, so I recall clearly a series of Dow barriers, especially in the 1990s. First, the Dow flirted with 3,000. with a double-top top of Dow 2,999.75 for two days in a row (July 16 and 17, 1990) before falling 21% to 2,365 on October 8 due to Gulf War 1.
Another major flirtation with high numbers came on January 31, 1994, when the Dow assaulted 4,000 for a week (closing at 3,978 on January 31, and 3,975 on February 1) before Alan Greenspan raised the Fed’s interest rate on Friday, February 4 – the first of seven Fed rate increases in the next year. The Dow did not return to 4,000 for over a year (in mid-March 1995), which brings me to a shocking 1994 prediction.
In 1994, I was editing a wonderful investment advisor and partner in the launch of his global investment letter and Dream Swiss Seminars. In the summer of 1994, with the Dow at 3,700, this conservative value investing money manager headlined his newsletter, “Dow 7,000 By 1997.” I normally let my experienced advisors choose their own stocks and predictions, but this one time, I unburdened a twinge of cowardice.
I urged him to reconsider: “Why Say 7,000? Surely 5,000 is a strong enough prediction.” He responded:
“Nope, 7,000. The market is ready for a massive move upward, breaking out of a bearish trading range.”
He was right, and even conservative, as the Dow reached 8,255 on July 30, 1997, just three-years later.
The Silliest Investment Question … “Why Did the Market Rise (or Fall) Today?”
When someone hears you work in finance, they want to know why the market went down (or up) today.
I don’t know how professional money managers handle this repetitive query about the market’s daily moves, but I’d say Louis Navellier and Jason Bodner on our Market Mail team put it best, when Louis says (on down days), “The market got up on the wrong side of the bed today” or (on up days), “The market got its mojo back.” Some advisors wax eloquent with all kinds of technical indicators, but Louie’s phrases on “waking up grouchy” or “getting its mojo back” catch the manic-depressive nature of traders.
Also, I like the data Jason Bodner brings us about big money buying and selling, in his Big Money Index (BMI). The reasons for their buying or selling are best known to those traders, but others cite a “risk-on” (bullish) or “risk-off” (bearish) mood, as if market risks (or world war risks) flip heads or tails, daily.
Last week, for instance, the market rose on Monday and Friday (heads, I win), and it fell in the middle of the week (tails, you lose). My dear wife asked me on Thursday night why the market fell. My answer was “More sellers than buyers.” Asked for details, I guessed right, “It will probably bounce back tomorrow.”
Yep, Friday was a reversion-to-mean recovery, as daily swings mean very little to buy-and-hold investors.
Obviously, last week’s surge was almost all based on Friday – with only the Dow Index and Russell rising. The S&P 500 and NASDAQ were down three-days in a row and down for the week as a whole.
The Dow’s 30-stocks are no longer a valid measure of “the market,” but the press loves big numbers!
So, was the market up or down last week? A lot of both, by sector and stock, as part of a massive rotation.
If you want some more convincing answers, let’s go to AI for a definitive answer. I asked these robots why the market went down last Thursday. Their answer: “The stock market fell on Thursday, February 5, 2026, marking a third-consecutive day of losses, driven primarily by a deepening technology-sector sell-off, concerns over artificial intelligence (AI) spending, and weak labor data. The S&P 500 dropped 1.2%, the NASDAQ Composite fell 1.6%, and the Dow Jones Industrial Average shed 1.2% (roughly 593-points).”
Then, when the market recovered on Friday, I asked the same disembodied geniuses why it happened. AI: “The stock market surged on February 6, 2026, with the Dow Jones Industrial Average surpassing 50,000 for the first time, driven by a rebound in battered technology, AI, and chip stocks. Investors bought the dip following a volatile week, supported by strong corporate earnings and positive consumer sentiment.”
Wow! This super-hyped AI genius tells me there is a “deepening tech-sector sell off” and “concerns over AI spending” Thursday, then “a rebound in battered technology, AI and chip stocks” on Friday. It’s “risk-off” one day, then “risk-on.” No wonder I don’t follow daily markets. Real trends come in chunks of one-year or more. It’s the same with jobs data, GDP and other key indicators. Look at the full 12-year track record, not daily, weekly or monthly “head fakes” from government data or stock market mood swings.
All content above represents the opinion of Gary Alexander of Navellier & Associates, Inc.
Also In This Issue
A Look Ahead by Louis Navellier
Why I Think Gold Will Reach $10,000 by the End of 2029
Income Mail by Bryan Perry
We’re Seeing a Perfect Tailwind for Convertible Debt
Growth Mail by Gary Alexander
At Dow 50k, Will We Fear “Big Numbers” Again?
Global Mail by Ivan Martchev
The Iranian Issue Is Far from Resolved
Sector Spotlight by Jason Bodner
Most of the Time, Reasons for Market Moves are Not Obvious
View Full Archive
Read Past Issues Here
About The Author
Gary Alexander
SENIOR EDITOR
Gary Alexander has been Senior Writer at Navellier since 2009. He edits Navellier’s weekly Marketmail and writes a weekly Growth Mail column, in which he uses market history to support the case for growth stocks. For the previous 20-years before joining Navellier, he was Senior Executive Editor at InvestorPlace Media (formerly Phillips Publishing), where he worked with several leading investment analysts, including Louis Navellier (since 1997), helping launch Louis Navellier’s Blue Chip Growth and Global Growth newsletters.
Prior to that, Gary edited Wealth Magazine and Gold Newsletter and wrote various investment research reports for Jefferson Financial in New Orleans in the 1980s. He began his financial newsletter career with KCI Communications in 1980, where he served as consulting editor for Personal Finance newsletter while serving as general manager of KCI’s Alexandria House book division. Before that, he covered the economics beat for news magazines. All content of “Growth Mail” represents the opinion of Gary Alexander
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