Quick Definition

The Dow Jones Industrial Average (DJIA) is a stock market index that measures the stock performance of 30 large, publicly-owned companies trading on the New York Stock Exchange (NYSE) and the NASDAQ.

Examples

• 1If the DJIA is up by 200 points, it indicates a positive market sentiment and generally suggests that the stocks of the major companies it tracks are performing well.
• 2During a major economic announcement, the DJIA might experience significant fluctuations, reflecting the market's reaction to the news.
• 3Investors often compare the performance of their own stock portfolios to the DJIA to gauge how well they are doing relative to the broader market.
• 4Financial analysts use the DJIA as a benchmark to develop investment strategies and advise clients on stock purchases.

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