The Dow Jones Industrial Average is used primarily as a measure of what?

The Dow Jones Industrial Average is a widely recognized stock market index that specifically measures the average price of 30 selected industrial stocks. These stocks are chosen from various industries to provide a representation of the broader U.S. economy, making the index an important indicator of the market's performance. By tracking these 30 blue-chip companies, the Dow reflects the health and economic outlook of the industrial sector within the stock market. This makes the average a key barometer for investors and analysts assessing market trends.

Other options refer to different types of indices or measurements. The first option describes a broader average, which is more akin to indices like the S&P 500 that track a larger number of stocks across multiple sectors. The third option focuses on small-cap stocks, while the fourth concerns total market capitalization, which is not related to the Dow's specific function or composition. Therefore, the context of the Dow’s purpose aligns precisely with measuring the average price of those 30 selected industrial stocks.