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Markets & Indices

S&P 500

A stock market index tracking the performance of 500 of the largest publicly traded companies in the United States.

In Depth

The Standard & Poor's 500, commonly known as the S&P 500, is a market-capitalization-weighted index of 500 leading U.S. publicly traded companies. It is widely regarded as the single best gauge of U.S. large-cap equities and is often used as a proxy for the overall stock market. The index is maintained by S&P Dow Jones Indices, a division of S&P Global. Companies must meet specific criteria to be included: U.S. domicile, adequate market capitalization (generally above $14 billion), positive earnings in the most recent quarter and over the trailing four quarters, adequate liquidity, and public float of at least 50%. The index covers approximately 80% of available U.S. market capitalization. It is weighted by float-adjusted market cap, meaning larger companies like Apple, Microsoft, and Amazon have a greater influence on the index's movement. More than $15 trillion in assets are benchmarked to the S&P 500, making it the most followed equity index in the world. For executives, the S&P 500 serves as the primary benchmark for corporate performance, executive compensation targets, and retirement portfolio allocations.

Related Terms

Dow Jones Industrial Average (DJIA)A price-weighted index of 30 prominent U.S. companies, one of the oldest and most recognized stock market indicators.Nasdaq CompositeA market-capitalization-weighted index of more than 3,000 stocks listed on the Nasdaq exchange, heavily weighted toward technology.Market CapitalizationThe total market value of a company's outstanding shares, calculated by multiplying share price by shares outstanding.Bull MarketA period during which stock prices are rising or expected to rise, typically by 20% or more from recent lows.

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Frequently Asked Questions

What is S&P 500?

A stock market index tracking the performance of 500 of the largest publicly traded companies in the United States.

Why does S&P 500 matter for business leaders?

The Standard & Poor's 500, commonly known as the S&P 500, is a market-capitalization-weighted index of 500 leading U.S. publicly traded companies. It is widely regarded as the single best gauge of U.S. large-cap equities and is often used as a proxy for the overall stock market. The index is maintai...

What terms are related to S&P 500?

Key related concepts include Dow Jones Industrial Average (DJIA), Nasdaq Composite, Market Capitalization, Bull Market. Understanding these interconnected metrics provides a more complete picture of the economic and market environment.

← Bear MarketDow Jones Industrial Average (DJIA) →
Definitions and explanations are provided for educational purposes only and do not constitute financial advice. Data sourced from the Federal Reserve (FRED), Bureau of Labor Statistics, U.S. Treasury, and Census Bureau.

Source: U.S. Bureau of Economic Analysis, 2026.

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In the SEC EDGAR DEF 14A proxy statements data, this concept shapes one or more of the fields that drive the per-entity grades and rankings on this site. The methodology page describes which fields feed into which output; this glossary entry documents the underlying term.