What is the S&P 500?

The S&P 500 is a stock market index that tracks the performance of five hundred of the largest publicly traded companies in the United States. It is considered a key indicator of the overall health of the U.S. stock market and economy. The index includes a diverse range of industries, such as technology, healthcare, financial services, consumer goods, and energy, representing approximately eighty percent of the total market capitalization of U.S. equities. The S&P 500 is managed by S&P Dow Jones Indices, a division of S&P Global Inc. The index is weighted by market capitalization, which means that larger companies have a greater influence on its value compared to smaller companies. Thus, the performance of the S&P 500 can reflect changes in the market and economy more broadly. Investors and financial professionals often use the index as a benchmark for evaluating the performance of individual stocks and mutual funds, as well as for making investment decisions. For more detailed information about the S&P 500, one might consider exploring the official website of S&P Global.