Standard & Poor 500
The Standard & Poor 500 is a stock market index comprised of the 500 largest publicly traded companies in the United States. It is one of the oldest and most widely-followed equity indices in the world, and serves as a benchmark for the broader U.S. stock market. It is calculated and maintained by the S&P Global Indices, a subsidiary of S&P Global Inc.
The index first came into being on March 4, 1957, when it was formed by the Standard & Poor’s Corporation. At the time, it consisted of 90 stocks and was designed to represent the performance of the entire U.S. stock market. In 1975, the index was expanded to 500 stocks and has remained that size ever since.
The companies that make up the S&P 500 are chosen based on their size, liquidity, and market capitalization. They are selected by an independent committee from the Standard & Poor’s U.S. equity universe, which consists of the stocks of all companies in the U.S. with market capitalizations of at least $8 billion.
Since it was first introduced, the S&P 500 has become one of the most closely-followed index in the world. It is widely seen as a key indicator of how the U.S. stock market is performing. Additionally, the index is used by many fund managers as a benchmark against which the performance of their managed portfolios can be compared.
The S&P 500 has been an important part of the U.S. economy for over 60 years. It has experienced both buoyant and gloomy days, but its long-term performance has generally been solid.
As of 2021, the S&P 500 stands at an all-time high of 4,228 points. This is a significant increase from its low point during the financial crisis of just over 666 points set in March of 2009. The S&P 500 has risen over 530% since then, driven in part by the Federal Reserve’s policies of low interest rates and quantitative easing.
The S&P 500 has not only been a key indicator of U.S. stock performance, but it has also been used to gauge the overall health of the U.S. economy. For example, when the S&P 500 falls, it can be an indication that the U.S. economy is weakening. Conversely, when it rises, it can be a sign that the U.S. economy is expanding.
The S&P 500 has continued to be an important benchmark for investors and policymakers alike, as it is a measure of how well the U.S. economy is doing and how well the stock market is performing. It is likely to remain one of the most widely-followed equity indices for many years to come.
