What is S&P 500?
The S&P 500 is an index that tracks about 500 of the largest publicly traded companies in the United States. It is widely used as a stand-in for how the overall U.S. stock market is doing. Many funds aim to mirror the S&P 500, which is why people often invest in it indirectly through an index fund or ETF.
Why S&P 500 matters
It is the most commonly referenced benchmark for U.S. stocks, so it shows up in news, funds, and comparisons constantly.
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