A comprehensive guide to the S&P 500 and its CFD trading

Posted in Indices
S&P 500 by OANDA (1)

Explore the S&P 500, one of the most followed stock indices globally, including its components and recent performance. Learn about investing in the S&P 500, trading CFDs on the index with OANDA, and a summary of OANDA's S&P 500 CFD trading options.

An introduction to the S&P 500

What is the S&P 500?

How is the S&P 500 calculated?

The components of the S&P 500

Constituent Stocks Symbol Sector
Microsoft Corp. MSFT Information Technology
Apple Inc. AAPL Information Technology
Nvidia Corp NVDA Information Technology
Amazon.com Inc. AMZN Consumer Discretionary
Meta Platforms, Class A META Information Technology
Alphabet Inc. A GOOGL Communication Services
Berkshire Hathaway B BRK.B Financials
Alphabet Inc. C GOOG  Communication Services
Eli Lilly and Co LLY Drug Manufacturing
Broadcom Inc AVGO Information Technology
TESLA Inc.  TSLA Automotive, and Energy Generation and Storage.
JP Morgan Chase and Co. JPM Banking

The movement of the S&P 500

S&P500
S&P movement from 2003 to 2023

Market corrections in S&P 500

Inflation in the United States

US CPI - Source US Bureau of Labor Statistics
US CPI - Source US Bureau of Labor Statistics
direction of US interest rates.
Direction of US interest rates.

US corporate performance and economy

Macrotrends (S&P 500 Earnings - 90 Year Historical Chart)
Source: Macrotrends (S&P 500 Earnings - 90 Year Historical Chart)
US GDP over the past few quarters.
US GDP over the past few quarters

Setting a long-term upward trend

Other crucial US stock indexes

Dow Jones Industrial Average

S&P 500 Dow Jones
Number of constituent stocks 500 stocks 30 stocks
Calculation method  Capitalisation-weighted average Average stock price
Features Exposed to large-cap companies Exposed to value stocks
S&P vs DJ
Source: TradingView

Nasdaq Index

Nasdaq Nasdaq Composite NASDAQ 100
Number of constituent stocks More than 3,000 stocks 100 stocks
Method of calculation Capitalization-weighted average Capitalization-weighted average
Features The stock market It can be used to analyze trends in the hi-tech sector and the Internet ·  Top 100 stocks excluding financial·  Greater focus on the hi-tech sector than the Nasdaq Composite
S&P 500 vs Nasdaq Composite and the NASDAQ 100 over some 20 years, from 2003 to 2022.
S&P 500 versus Nasdaq Composite and the NASDAQ 100 over 20 years, from 2003 to 2022. Source: TradingView

Russell Index

S&P 500 vs Russell 2000
S&P 500 vs Russell 2000 Source: TradingView

Nikkei Stock Average

Nikkei Stock Average TOPIX
Number of constituent stocks 225 stocks About 2,000 stocks
Calculation method Average stock price Capitalization-weighted average
Features Exposed to value stocks ·Exposed to large-cap companies
S&P 500 vs Nikkei Stock Average and TOPIX over a roughly 20-year period
S&P 500 vs Nikkei Stock Average and TOPIX over a roughly 20-year period Source: TradingView

How to invest in the S&P 500

CFD trading

Summary

Frequently asked questions

What is the S&P 500 index?