Dow futures
Definition
Futures contracts based on the Dow Jones Industrial Average (DJIA), a stock market index tracking 30 major U.S. companies, allowing traders to speculate on or hedge against future index movements.
Exchange-traded derivatives, primarily on the Chicago Mercantile Exchange (CME), that serve as leading indicators for the stock market's opening direction before regular trading hours.
Examples
Traders woke up to Dow futures tanking harder than their New Year's resolutions after just two weeks.
She checked the Dow futures at 3 a.m., only to realize her insomnia had turned into a full-time job.
When Dow futures spiked overnight, Wall Street's coffee got an extra shot of espresso-fueled optimism.
Betting against Dow futures is like playing poker with a room full of algorithms – good luck reading their bluffs.