2024.04.16
For some traders, trading in stocks is a novelty, and many need help knowing where to start, how to research, or how to select stocks for trading or investing.
Read more
US500 – Trade S&P 500 Index
The S&P 500 or US500 is an index that is built on the 500 US capital companies with the highest capitalization. US500 is the leading US index and especially popular among traders. The S&P 500 index, along with the Dow Jones index, determines the state of the US economy. However, the S&P 500 is more objective and effective than the Dow Jones, since it covers most of the market. JustMarkets offers to start trading US500 right now!
- Spread from: 5;
- Tick size: 0.10;
- Swap (pips) Long: -6.00%;
- Swap (pips) Short: -3.00%.
About US500
Standard&Poor's company created the index on March 4, 1957. This is a rating community that emerged in 1941 through the merger of Standard Statistics Company and Poor's Publishing Company. The first stock market indicator was released in 1923 and covered 233 companies. When the companies merged, the list of companies based on the index was increased to 416, and in 1957 to 500.
The index includes companies from various sectors of the United States. Therefore, we can assume that the index most accurately reflects the state of the American economy. Today, financial companies occupy the largest share of the index. IT companies account for 15%, industrial companies – 10%. The index listing includes companies such as Apple Inc.MasterCard Inc., Walt Disney Co., General Electric, etc.
To be included in the index, a company must meet certain criteria, for example:
- Capitalization should be at least $6.1 billion, but this value may vary;
- Within six months before the company is included in the list, its minimum share turnover must exceed 250 thousand shares per month.
What affects the S&P 500 index?
Of course, it will be difficult to analyze all 500 companies that are part of the index in order to predict its movements. US500 generally reflects the state of all business in the United States.
Therefore, actual data on the following indicators should be considered:
- US exports and imports;
- US Production volumes;
- Sentiments on the commodities market, which also has a big impact on stock prices.
It is also recommended to pay attention to the main statistics on the US economy. It will a plus to following the speeches of the heads of the largest companies included in the index listing, the Fed's head, changes in interest rates, reports of the Ministry of Finance, etc.