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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.

Quick Answers to Curious Questions

It covers a wide range of sectors and includes the largest, most influential U.S. companies, providing a comprehensive view of the market.

It helps investors gauge the performance of their portfolios and serves as a benchmark for market comparison.

The S&P 500 includes 500 companies across various sectors, while the Dow Jones tracks 30 large industrial companies, making the S&P 500 more diversified.