Finance Dictionary
S&P 500
Definition
A stock market index that measures the stock performance of 500 large companies listed on stock exchanges in the United States.
Deep Dive
The S&P 500, or the Standard & Poor's 500, is a stock market index that measures the stock performance of 500 of the largest publicly traded companies in the United States. It is a market-capitalization-weighted index, meaning companies with larger market values have a greater impact on the index's performance. Widely considered one of the best gauges of large-cap U.S. equities and the overall health of the U.S. stock market and economy, it represents approximately 80% of the total market capitalization of the U.S. stock market.
Examples & Use Cases
- 1An investor choosing an S&P 500 index fund as a low-cost, diversified way to gain broad exposure to the U.S. large-cap stock market.
- 2Financial news reports indicate that the S&P 500 closed up 0.75% for the day, signaling a generally positive trading session for major U.S. companies.
Related Terms
Dow Jones Industrial AverageNASDAQ CompositeMarket Index