Have you heard friends around you asking “how is US stock market today” even though they are not invested in it? You have probably heard of the adage “when America sneezes, the world catches a cold”. What happens in America affects the rest of the world, be it for good or for bad. The same phenomenon happens in the stock market as well, and that’s the reason stock market investors and traders tend to keep an eye on the U.S. stock market, even though they may not be directly involved in it.
To answer this question from the big picture view, we normally look at the major indices in the U.S. stock market like S&P-500 and NASDAQ-100.
Let’s take a close look at what each of them mean.
S&P500 is the stock market index that measures the stock performance of 500 large companies listed on stock exchanges in the U.S. It is one of the most popular stock indices, and many consider it to be one of the best representations of the U.S. stock market. To look at the latest performance, we normally look at the chart of “SPY” – an exchange-traded fund that track the S&P 500 stock market index.
The NASDAQ 100 is a stock market index made up of stocks of 100 of the largest non-financial companies listed in the NASDAQ stock exchange. It is represented by companies in the industrial, technology, retail, telecommunication, biotechnology, health care, transportation, media & service companies. These has commonly been seen as the high growth segment in US stock market. To look at the latest performance, we normally look at the chart of “QQQ” – an exchange-traded fund that track the NASDAQ-100.
So now you know what to look at when you are asked how is US stock market today. And if you explore the charts above a little bit more, you will discover that if you invest in SPY or QQQ since 10 years ago, your investment would have tippled or more. What if you have that knowledge to do so? Perhaps now is a good time to get started – join our Global Investing Made Simple seminar to find out more!