Guide Note

On June 27, 2008, the Dow Jones Industrial Average (DJIA) fell 20 percent from its October 2007 high, the definition of a bear market. By day's end, the Dow had rallied to regain some of its losses, closing at just under 11,347—a drop of nearly 107 points.¹

Fast Facts

1. June 27, 2008: Dow fell nearly 125 points, to just over 11,328²
2. Rallied to close at 11,347¹
3. At its low, the Dow Jones Industrial Average was down 20.2 percent from its October 2007 high³
4. October 9, 2007: DJIA closed at a record high 14,164.53⁴
5. Bear market generally defined as a market that loses 20 percent or more of its peak value¹
6. Last bear market period: March 2000 to October 2002¹

On June 26, 2008, the Dow fell more than 350 points to hit its lowest trading point in 21 months. Many experts believed the sharp sell-off was prompted by soaring oil prices. That day, oil surged to a record high of more than $140 per barrel.⁵