Dow Jones Industrial Average: Definition and Significance

What is the Dow Jones Industrial Average?

The Dow Jones Industrial Average (DJIA) is a stock market index that tracks the performance of 30 major American companies listed on the New York Stock Exchange and the Nasdaq.

Significance of the Dow Jones Industrial Average

The DJIA is one of the most widely recognized and closely watched stock market indices in the world. It is considered a barometer of the overall health of the U.S. economy and is often used by investors to gauge the direction of the market.