Dow Jones: Market Overview
The Dow Jones Industrial Average, Dow Jones, or simply the Dow, is a stock market index of 30 prominent companies listed on stock exchanges in the United States including American Express, Johnson and Johnson and others.
The US stock market’s regular trading hours are from Monday to Friday 9:30 am to 4:30 pm EST (2:30pm to 9pm GMT).
The Dow Jones Industrial Average (DJIA) is one of the longest-running US stock market indices. It consists of 30 large, well-established companies drawn from a variety of sectors, including technology, finance, healthcare, and consumer goods. Often called “the Dow,” it is price-weighted, meaning that components with higher share prices have a greater effect on the index’s daily movements.
Key Characteristics
- Limited Number of Companies: Since the DJIA only tracks 30 firms, it does not always reflect the entire US market.
- Price-Weighted Method: A stock with a higher share price influences the index more than a lower-priced stock.
- Blue-Chip Focus: Companies included typically have a solid reputation, stable earnings, and steady dividends.
- Market Barometer: Because of its age and public recognition, the Dow is often watched as a quick reference for broader market sentiment.