The Dow Jones Industrial Average (DJIA) is a stock index that tracks 30 major US-listed companies. It is one of the oldest and most-followed benchmarks for the US equity market.
The DJIA is price-weighted, so higher-priced stocks move it more than lower-priced ones. That makes it different from market-capitalisation-weighted indices such as the S&P 500.
Traders read the DJIA for large-cap US performance, market sentiment, and economic confidence. Exposure comes through index funds, exchange-traded funds, futures, options, or CFDs linked to it.
You follow the Dow Jones Industrial Average for US blue chips.
If several of its 30 components rise on strong earnings, the index moves higher. If large industrial, financial, or consumer names fall, it declines, because the DJIA reflects the price moves of just 30 stocks.