Did you know that there are three main stock indexes that are the main focus in the US stock market, namely the S&P 500, Dow Jones and Nasdaq.
The stock index is a measure of the performance of the stock group of the companies listed in it.
These indices are important information for the US stock market and provide an indication of the health of the economy and the investment climate.
Let's get to know these 3 main indexes.
S&P 500
The Standard & Poor's 500 index, better known as the S&P 500, includes the stocks of the 500 largest publicly traded companies in the US.
Is an index that refers to market value, companies with a larger market value have a greater influence on the performance of the index.
The S&P 500 covers a wide range of sectors, provides a comprehensive view of the US economy and is considered the best single indicator of US large equities.
The index is also used as a benchmark for various investment products, including mutual funds, ETFs, and index funds.
Additionally, it serves as a benchmark for institutional and retail investors, and its performance is often seen as an indicator of the health of the United States economy.
Dow Jones
The Dow Jones Industrial Average is an index that gathers 30 active company stocks from various sectors, including finance, healthcare, technology, and consumer goods.
Is one of the oldest stock indices established in 1896.
Shares of companies with higher prices have a greater influence on the movement of the index.
Its influence can impact investor confidence and economic sentiment.
NASDAQ
NASDAQ includes more than 3,000 stocks listed on the NASDAQ Stock Exchange.
Unlike other indexes, NASDAQ is known for its indexes that focus on technology and internet-based companies.
Giant companies such as Apple, Microsoft, Amazon, and Facebook (Meta) are part of this index, making it a leading indicator of the performance of the technology industry.
Seen as an indicator of investor sentiment towards technology and innovation, the index is an important benchmark for technology-focused investment portfolios and mutual funds.
