S&P 500
The S&P 500 (Standard & Poor’s 500) is a stock market index that tracks the performance of 500 of the largest publicly traded companies in the United States. The index is widely regarded as one of the best representations of the U.S. stock market and economy. The S&P 500 includes companies from various sectors such as technology, healthcare, financials, and consumer goods, making it a diverse benchmark for overall market performance.
Example
An investor may track the S&P 500 to gauge the performance of their U.S. stock investments, as the index reflects the overall health of the U.S. economy.
Key points
• Tracks the performance of 500 large U.S. companies across various sectors.
• Widely used as a benchmark for the overall U.S. stock market.
• A key indicator of the health of the U.S. economy and stock market.