Dow Jones Industrial Average

## What this measures

This measures the daily closing value of the Dow Jones Industrial Average, a price-weighted index of 30 large U.S. companies across various industries. The index tracks the market close, which is typically 4 PM ET.

## Why it matters

The Dow provides a view of U.S. stock market performance and broader economic conditions. Movements in the index reflect investor sentiment about corporate earnings and economic prospects. For organizations, sustained changes can signal shifts in business confidence, borrowing costs, and the availability of capital.

## How to read it

A rising index indicates strengthening equity markets and often correlates with economic expansion. A falling index suggests declining investor confidence or deteriorating economic conditions. Compare the level to its recent range or long-term trend to assess whether valuations are elevated or depressed.

## What it does not say

This does not capture the performance of small or mid-sized companies, nor does it reflect the broader market as comprehensively as market-cap-weighted indices. The price-weighted methodology means higher-priced stocks exert more influence regardless of company size.

## Source

Published by S&P Dow Jones Indices LLC. Palanor pulls this series from the FRED API nightly.