S&P 500 Explained – What It Is and Why Investors Watch It Closely 📊 The S&P 500 is one of the most widely followed stock market indexes in the world. For anyone looking to invest in the US stock market, understanding the S&P 500 is essential. It gives you a snapshot of how the overall market is performing and helps you track the health of large US companies. 1. What is the S&P 500? The S&P 500, short for Standard & Poor’s 500 , is a stock market index that tracks 500 of the largest publicly traded companies in the United States. It includes companies from various sectors like technology, healthcare, finance, and consumer goods. Big names like Apple 🍎, Microsoft 💻, Amazon 📦, and Johnson & Johnson 🏥 are part of this index. By following the S&P 500, investors can see the overall trend of the US stock market without checking individual stocks. It is considered a benchmark for how the market and the economy are performing. 2. How Does t...