Trevor Neal Posted May 13, 2020 Share Posted May 13, 2020 Why is the S&P 500 index so important for the U.S. economy? Quote Link to comment Share on other sites More sharing options...
0 James Byrnes Posted May 13, 2020 Share Posted May 13, 2020 Hi Trevor, thanks for your question. The S&P 500 index was introduced in 1957 by The Standard & Poor's as a “500” index. It consists of 500 large companies that represent the most significant sectors within the United States economy, and not because of the fact they are the largest in the business. The S&P 500 Index was introduced on January 1, 1957, starting to trade at $386.36. Not a long time after, the value of the S&P 500 jumped to almost $700. S&P 500 is widely accepted as the benchmark index for the U.S. economy. One of the biggest reasons why it’s so popular among investors and analysts is that throughout history, the value of the S&P 500 index has accurately followed the ups and downs of the United States economy. The Index corrected 40% during the 2008-2009 global financial crisis to hit fresh all-time highs in the previous years. Quote Link to comment Share on other sites More sharing options...
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Trevor Neal
Why is the S&P 500 index so important for the U.S. economy?
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