What is the S&P 500?

The Standard and Poor's 500, or simply the S&P 500, is a stock market index tracking the stock performance of 500 of the largest companies listed on stock exchanges in the United States. It is one of the most commonly followed equity indices.

Investors use the S&P 500 as a benchmark for the overall health of the U.S. economy and stock market. Because it is weighted by market capitalization, larger companies like Apple, Microsoft, and Amazon have a greater impact on the index's movement.

Ticker: ^GSPC (Standard Index) / SPY (Tradable ETF)

Curiosity: Even though it is called the S&P "500", the index actually contains 503 stocks! This is because a few companies, like Alphabet (Google), Fox Corp, and News Corp, have two different classes of shares listed simultaneously.