The three main US stock indices: Dow Jones, S&P 500 and Nasdaq

Video Transcript

Today, we’re going to talk about the three main US stock indices.
But before we get started, let’s first understand what an index is!

An index is like a basket of stocks that represent a specific group of companies.
It gives us a quick snapshot of how the overall market or a particular sector is performing.
In the US, there are three main stock indices: the Dow Jones, the S&P 500, and the Nasdaq Composite.

The Dow Jones consists of 30 large and well-established companies from various industries.
It’s one of the oldest indices and gives us an idea of how the big players in the market are doing.

The S&P 500 includes 500 of the largest publicly traded companies in the US.
It’s considered a broader representation of the market’s performance and is widely used by investors and professionals.

The Nasdaq Composite includes more than 3,500 companies, mainly from the technology sector.
It shows us how tech-heavy companies are performing in the market.

Now that you have a better understanding of these indices, are you ready to start investing in the stock market?
It’s never too late to begin your investment journey!

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Author: Federica Montella
eToro Popular Investor, food lover and blogger. Stock trader and Popular Investor at eToro. I am on a mission to find the best restaurants and food to eat.