The S&P 500 tracks 500 of the largest US companies and is the world's most-watched stock benchmark. Traded as the "ES" future, ETFs or CFDs, it's a core market for active traders.
What the S&P 500 is
A broad, market-cap-weighted index spanning every major US sector. It's the default proxy for "the US stock market" and a barometer of global risk appetite.
What drives it
- Interest rates — Fed policy and rate expectations are the dominant macro driver.
- Earnings season — results from big constituents move the index.
- Risk sentiment — the S&P leads global risk-on/risk-off swings.
S&P 500 vs Nasdaq 100
The S&P 500 is broader and a bit calmer; the Nasdaq 100 is tech-heavy and more volatile. In rate-driven selloffs the Nasdaq usually falls harder.
A disciplined routine
- Trade with the higher-timeframe trend — the index trends well and fades those who fight it.
- Use prior-day levels and support/resistance for entries and stops.
- Be cautious into Fed decisions and major data; size by risk with the position-size calculator.
The S&P rewards patience and trend-following. The hard part is sitting still when the news is loud.
Education only — not financial advice.