The US Standard & Poor’s Index 500, referred to as “S&P 500”, with the English name “S&P 500 (Standard & Poor’s 500)”, is one of the three major stock price indices in the United States. The S&P 500 Index was founded in 1957 by Standard & Poor’s, a subsidiary of S&P Global, and is now managed by S&P Dow Jones Indices LLC, the holding company of S&P Global. The index covers the stocks of 500 companies listed in the United States (a total of 505 stocks). Compared with the Dow Jones Industrial Average, which has only 30 constituent stocks, and the Nasdaq 100 index, which focuses on the technology industry, many people believe that the benchmark Pu 500 can best represent the rise and fall of the US stock market and the rise and fall of the US economy.

The S&P 500 is a market capitalization-weighted index and does not impose restrictions on the influence of large market capitalization companies. This has resulted in the 10 companies with the largest market capitalizations accounting for approximately 20% of the index’s performance. Similar to the Dow Jones Industrial Average, the constituent stocks of the index are determined by a committee. They mainly examine the following 8 aspects of the company: market value, liquidity, locality, public float, industry, financial feasibility, and listing time, And listed exchanges. The regulatory agency will regularly update the list of S&P 500 constituent stocks. Some of them were replaced due to acquisitions/mergers, and some were replaced due to mismanagement. Between January 1, 1963, and December 31, 2014, there were 1,186 stocks in total. The company was replaced by another company.

The largest single-day drop in the history of the US S&P 500 occurred on Monday, October 19, 1987 (historically known as “Black Monday”), the drop reached 20.47% on that day, and the largest drop in points occurred in March 2020. On the 16th, the index fell 324.89 points on the same day.

In addition to the US S&P 500, which represents large companies, there are also the S&P Mid-Cap 400 Index, which represents medium-sized companies, and the S&P Small-Cap 600 Index, which represents small companies. Together, the above three are called the Standard & Poor’s 1500 Composite Index, which covers approximately 90% of the total market capitalization of the US stock market.

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