What does the Dow Jones Industrial Average track?

The Dow Jones Industrial Average (DJIA) is a stock market index that specifically tracks the stocks of 30 major companies in the United States. These companies are leaders in their respective industries and have a significant impact on the overall U.S. economy. The DJIA is designed to provide an indicator of how the stock market is performing overall, reflecting the price performance of these large, established firms.

By focusing on just 30 companies, the DJIA provides a simplified overview of market trends rather than attempting to represent every publicly traded company. This makes it a widely recognized and referenced index, particularly for gauging the health of the industrial and financial sectors. The other options present broader categories that do not accurately describe the focused nature of the DJIA. For example, it does not encompass all publicly traded companies or limit itself solely to the most profitable or small-cap stocks, as those are distinct segments of the stock market.