dow-jones average
LowFormal, Technical, Journalistic
Definition
Meaning
A stock market index that measures the performance of 30 major, publicly-owned companies listed on stock exchanges in the United States.
Often used as a key indicator of the overall health and direction of the US stock market and, by extension, the US economy. The term can also refer informally to any stock market index, though this is technically incorrect.
Linguistics
Semantic Notes
Proper noun; traditionally hyphenated (Dow-Jones) but often seen unhyphenated (Dow Jones). The full formal name is the Dow Jones Industrial Average (DJIA).
Dialectal Variation
British vs American Usage
Differences
Identical in meaning and primary usage. In British contexts, the FTSE 100 is the equivalent primary domestic index.
Connotations
In both varieties, it connotes financial markets, economic health, and investment. In American media, it is a daily economic touchstone.
Frequency
Substantially more frequent in American English due to its domestic relevance. In British financial reporting, it is still very common as a global benchmark.
Vocabulary
Collocations
Grammar
Valency Patterns
The Dow-Jones average VERBed (e.g., rose, plunged, stabilised).Investors watch the Dow-Jones average closely.News of X sent the Dow-Jones average higher/lower.Vocabulary
Synonyms
Strong
Neutral
Weak
Vocabulary
Antonyms
Phrases
Idioms & Phrases
- “N/A”
Usage
Context Usage
Business
Standard term in financial reports, analysis, and market summaries. 'The Dow-Jones average is a key metric for institutional investors.'
Academic
Used in economics and finance papers discussing market indices, historical trends, or economic indicators.
Everyday
Used in general news headlines to summarise daily market performance (e.g., 'Dow Jones up 200 points').
Technical
Used by traders, analysts, and financial software; precise calculations and components are discussed.
Examples
By Part of Speech
verb
British English
- N/A
American English
- N/A
adverb
British English
- N/A
American English
- N/A
adjective
British English
- N/A
American English
- N/A
Examples
By CEFR Level
- The Dow-Jones average is in the news.
- It tells us about big companies.
- The Dow-Jones average went up today.
- Many people check the Dow-Jones average to see how the stock market is doing.
- After the central bank's announcement, the Dow-Jones average surged by over 300 points.
- Analysts were surprised by the resilience of the Dow-Jones average during the political uncertainty.
- While the Dow-Jones average is often criticised for its price-weighted methodology, it remains an enduring symbol of American capitalism.
- The correlation between movements in the Dow-Jones average and consumer confidence indices is a key area of macroeconomic study.
Learning
Memory Aids
Mnemonic
Think of 'Dow-Jones' as the names of its founders (Charles Dow and Edward Jones) giving an 'average' score for industrial giants.
Conceptual Metaphor
THE STOCK MARKET IS A PATIENT (The Dow-Jones average is a vital sign/health indicator). THE STOCK MARKET IS A RACE (The Dow-Jones average is a score/position).
Watch out
Common Pitfalls
Translation Traps (for Russian speakers)
- Do not translate 'Dow' or 'Jones'. It is a proper name.
- Do not confuse with 'средний показатель' in isolation; it is a specific index, 'индекс Доу-Джонса'.
- 'Average' here does not mean 'посредственный' (mediocre).
Common Mistakes
- Saying 'Dow-Jones Average' to refer to the NASDAQ or S&P 500.
- Omitting the hyphen or capital letters in formal writing.
- Using it as a general verb or adjective (e.g., 'The market was very Dow-Jones today').
Practice
Quiz
What is the Dow-Jones average primarily composed of?
FAQ
Frequently Asked Questions
No. The Dow-Jones Industrial Average (DJIA) tracks 30 major companies. The S&P 500 tracks 500 large companies and is considered a broader market indicator.
Historically, it was calculated as a simple arithmetic average of the stock prices of its components. Today, it uses a divisor to adjust for stock splits and other corporate actions.
It is calculated and updated in real-time during trading hours of the New York Stock Exchange (typically 9:30 am to 4:00 pm Eastern Time).
While a sustained, significant decline in the Dow (and other indices) can be a leading indicator of an economic downturn, it is not a perfect predictor and is influenced by many factors.