Trade S&P 500 With a Top Rated Broker*
About S&P Index
What is the S&P 500 and why trade it?
- The S&P 500 Index, also known as the Standard & Poor's 500, is an index that monitors the top 500 major American company weighted by market capitalisations.
- The S&P 500 is widely regarded as a reliable indicator of the overall health of the U.S. economy and is closely followed by investors, traders, and financial analysts.
- The S&P 500 provides a broad snapshot of the performance of the U.S. stock market and is often used as a benchmark for evaluating the performance of individual stocks, mutual funds, etc.
What drives the S&P 500?
- Economic data, such as GDP, inflation, and employment figures, can significantly impact the S&P 500 as they reflect the overall health of the economy.
- The performance of individual companies that make up the S&P 500 can influence the index.
- Changes in interest rates can impact the S&P 500, as they affect borrowing costs for corporations and can impact their earnings.
- Government policies, such as tax and trade policies, can impact the S&P 500, particularly for companies that operate in specific industries.
- Developments in other countries and global markets can impact the S&P 500, particularly for companies that have significant international operations.
When is the most active time to trade the S&P 500?
The S&P 500 is most active during regular trading hours, which are from 09:30 to 16:00 Eastern Time, Monday through Friday. The most active times within this window are typically the first hour of trading and the last hour of trading.
What are the advantages of trading the S&P 500?
- The S&P 500 is closely tied to the U.S. economy, making it an excellent barometer of economic conditions.
- The S&P 500 consists of 500 companies from various sectors, offering traders the opportunity to diversify their portfolio and minimise risk.
- As political and economic events can significantly impact the exchange rate of the EURGBP, this can provide opportunities for traders to profit from news-driven volatility.