US Major Indices

The U.S. stock market is home to several major indices that provide a snapshot of the economy and guide investment decisions. Here are the most important ones:

• S&P 500: This index tracks the performance of the 500 largest publicly traded companies in the U.S. It covers various sectors, making it a key indicator of the overall health of the American economy. Investors often use it as a benchmark to measure portfolio performance.
• Dow Jones Industrial Average (DJIA): One of the oldest and most recognized indices, the DJIA consists of 30 significant U.S. companies, including blue-chip stocks like Apple, Microsoft, and Coca-Cola. It is price-weighted, meaning companies with higher stock prices have more influence on the index’s movement.
• NASDAQ 100: Focused primarily on technology and growth-oriented companies, the NASDAQ 100 includes the 100 largest non-financial companies listed on the NASDAQ stock exchange. It is heavily weighted by tech giants such as Apple, Amazon, Google, and Meta (Facebook), making it a leading indicator of the tech sector’s health.

These indices are crucial for tracking economic trends, guiding investment strategies, and providing benchmarks for fund performance. Investors worldwide watch them closely to understand market movements and make informed financial decisions.