S&P 500

The S&P 500 is a stock market index that measures the performance of 500 of the largest publicly traded companies in the United States. It is the largest stock market index.

Explanation

The S&P 500 is widely regarded as a benchmark for the overall U.S. stock market and economy. It covers various industries and sectors, providing a comprehensive snapshot of market performance.

Practical example

An investor tracks the S&P 500 index to get a sense of the market's overall health. If the S&P 500 is performing well, it indicates a generally strong market, influencing the investor's decision to buy more stocks.

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