Current Price: 5,514 (N/A vs last year)
Apr 25, 2025
| 2000: | 1,426 | |
| 1975: | 72.56 | |
| 1950: | 16.88 | |
| 1925: | 10.58 | |
| 1900: | 6.10 | |
| 1875: | 4.54 |
The S&P 500 (Standard & Poor's 500) is one of the most widely recognized stock market indices in the world. It tracks the performance of 500 of the largest publicly traded companies in the United States. These companies span various industries, providing a comprehensive snapshot of the U.S. economy and its stock market. To be included in the S&P 500, a company must meet several criteria, the main one being market capitalization: companies must have a market capitalization of at least $14.6 billion (as of 2025, subject to periodic revision). Liquidity: Stocks must have a minimum monthly trading volume and adequate float (shares available for public trading). Profitability: The company must have positive earnings in the most recent quarter and over the last four quarters combined. U.S.-Based: The company must be headquartered in the United States. Listing: Stocks must be listed on either the NYSE, NASDAQ, or Cboe.
The S&P 500 is float-adjusted market-capitalization-weighted, meaning larger companies have a greater influence on the index's performance. The selection of companies is not automatic; it is reviewed by a committee at S&P Dow Jones Indices. The index is rebalanced quarterly to account for changes in market conditions, corporate actions (like mergers or spin-offs), and companies meeting or failing to meet inclusion criteria.
The S&P 500 was launched in 1957 by Standard & Poor's. It was one of the first stock indices to use computers to calculate its value. The S&P 500 has historically delivered an average annual return of about 10%, including dividends, making it a preferred choice for long-term investors.
The S&P 500 is float-adjusted market-capitalization-weighted, meaning larger companies have a greater influence on the index's performance. The selection of companies is not automatic; it is reviewed by a committee at S&P Dow Jones Indices. The index is rebalanced quarterly to account for changes in market conditions, corporate actions (like mergers or spin-offs), and companies meeting or failing to meet inclusion criteria.
The S&P 500 was launched in 1957 by Standard & Poor's. It was one of the first stock indices to use computers to calculate its value. The S&P 500 has historically delivered an average annual return of about 10%, including dividends, making it a preferred choice for long-term investors.
From 1900 to 2000:
S&P 500 (stock market): +23,270%
US Home Prices: +3,018%
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Sources:
- Yahoo! Finance
- Robert Shiller
and his book Irrational Exuberance
for historic S&P 500 prices, and historic CPIs.
for historic S&P 500 prices, and historic CPIs.