Dow Jones Industrial Average
In short
The Dow Jones Industrial Average is a stock market index that tracks the performance of 30 large, influential companies listed in the United States.
In plain words
It acts like a thermometer for the American economy. By watching these 30 major businesses, investors can get a quick idea of how the stock market is doing.
A simple example
If most of the 30 companies, such as Apple or Microsoft, see their share prices rise, the Dow Jones index value will go up.
Why it matters
It is one of the most watched indicators in the world. Financial news reports use it to show whether investors are feeling confident or worried about the economy.
Easy to mix up
Do not confuse it with the S&P 500, which tracks 500 companies instead of just 30.