Dow Jones Industrial Average
a.k.a. DJIA, The Dow, US30
A famous US stock index that tracks 30 large companies, calculated by share price rather than company size.
In plain English
A famous US stock index that tracks 30 large companies, calculated by share price rather than company size.
The Dow dates back to 1896 and is the most-quoted index on the evening news. Unlike the S&P 500, it weights companies by share price, so a stock with a high price moves the index more regardless of how big the company is.
Most professionals prefer broader indexes, but the Dow still serves as a headline gauge of US market mood.
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