Understanding the US Stock Market
The US stock market is the largest and most liquid market in the world, with a combined market capitalization exceeding $50 trillion. Three major indices track different segments of the market.
S&P 500
The S&P 500 tracks 500 of America's largest publicly traded companies. It is widely considered the best single measure of the US stock market and is the benchmark most fund managers try to beat (and usually fail). Learn more about the stock market.
Dow Jones Industrial Average
The Dow tracks 30 blue-chip companies. While it's the oldest and most recognizable index, its price-weighted methodology makes it less representative than the S&P 500.
NASDAQ Composite
The NASDAQ tracks 3,000+ stocks listed on the NASDAQ exchange, heavily weighted toward technology companies like Apple, Microsoft, Amazon, and Google.
Market Tools on RetailInvestor.org
- Fear & Greed Index — measure market sentiment
- Treasury Rates — current bond yields
- Economic Indicators — GDP, inflation, employment
- Compound Interest Calculator
- Investing Glossary