Stock Market Indices

Stock market indexes track the performance of a group of stocks representing a particular market or sector. They serve as benchmarks for portfolio performance and provide insights into overall market sentiment. Major indexes include the S&P 500, Dow Jones Industrial Average, NASDAQ Composite, and international indexes like FTSE 100, DAX, Nikkei 225, and Hang Seng.

Understanding Index Composition:

• Price-weighted indexes - Dow Jones, Nikkei 225
• Market-cap weighted indexes - S&P 500, NASDAQ Composite
• Equal-weighted indexes - S&P 500 Equal Weight
• Sector-specific indexes - SOX (Semiconductors), XLE (Energy)