Dow winning streaks typically portend more good times for stocks and the economy. With a few notable exceptions.

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If the Dow Jones Industrial Average manages to pull off a 13th day in the green on Wednesday, it would cement the blue-chip gauge's longest winning streak...

If the Dow Jones Industrial Average manages to pull off a 13th day in the green on Wednesday, it would cement the blue-chip gauge’s longest winning streak since Jan. 20, 1987.

Even if it falls short, the Dow’s DJIA come-from-behind streak of uninterrupted gains has already made it into the markets history books. At 12 days as of Tuesday’s close, it’s the longest winning streak since Feb. 27, 2017, according to Dow Jones Market Data.Perhaps the biggest issue facing the Dow as opposed to the S&P 500 index and Nasdaq Composite is that the Dow isn’t nearly as heavily weighted toward the so-called Big Seven U.S.

Of course, the Dow is still trailing the S&P 500 SPX and Nasdaq Composite COMP in 2023 by a hefty margin, with the S&P 500 up 18.6% and the Nasdaq Composite’s gain of 34.3%. On average, the blue-chip gauge has been 9.4% higher one year later, with at least one notable exception: The Black Monday market crash, which saw the Dow drop more than 22% in a single day, occurred nine months after a 13-day Dow winning streak ended in January 1987. One year later, the index was down 10.7%.

 

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