What is S&P 500?
The S&P 500 Index, or Standard & Poor's 500 Index, is a stock market index that represents the performance of 500 of the largest publicly traded companies in the United States.
This index offers a comprehensive view of the overall US stock market, encompassing a diverse array of industries. Its constituents include companies from sectors such as technology, healthcare, finance, and consumer goods. Some S&P 500 companies include Microsoft, Apple, Amazon, and Tesla.
With a focus on market capitalization, the S & P 500 is weighted by the size of each company, meaning that larger companies have a bigger influence on the index's movements. As a result, the S&P Index serves as a fundamental measure of the health and trends of the US economy.
Given the similar nature of the indices, many traders often compare the NASDAQ 100 Index with the S&P 500 Index. Discover the What is the difference between S&P 500 and Nasdaq-100.
Is it better to invest in S&P or Nasdaq?
Although the data shown that Nasdaq 100 performed better than the S&P 500 last year, it is important to note that each indexes their own unique strengths within the landscape of stock market indices.
The Nasdaq 100's standout feature lies in its focused representation of technology and innovation-driven sectors, allowing traders to track the performance of leading tech companies.
On the other hand, the S&P 500's strength lies in its comprehensive inclusivity, spanning a broad spectrum of industries and sectors. This diversity offers investors a holistic view of the American economy, making the S&P 500 a reliable barometer for overall market trends and economic health.
Both indices bring unique strengths to the table, catering to different investment preferences and providing valuable insights into distinct facets of the stock market.
How to Invest In S&P 500 Futures?
For traders seeking alternatives to investing in index funds, the Chicago Mercantile Exchange (CME) provides a range of E-mini Nasdaq 100 and E-mini S&P 500 contracts, including futures, options, and week options.
Traders can trade these contracts through MAS regulated forex brokers such as Orient Futures Singapore. Using regulated brokers not only allows international traders access to products around the clock, 24/5, but it also prevents traders from falling into the wrong hands of Forex scams. To avoid being a victim of such crime, What Is A Regulated Broker and the 4 Common Forex Trading Scams in 2023.
E-Mini S&P 500 Futures
The E-mini S&P Futures have the following contract specifications:
The Futures Contract has a contract unit of $50 x Nasdaq- 100 Index with a minimum price fluctuation of 0.25 index point/$12.50 outright.
Contract months are quarterly on March, June, September, and December.
The last trading day of the contract month is the third Friday of the contract month.
Chicago Board of Trade trading hours are from Sun to Friday, at these trading hours:
5:00pm - 4:00pm (Settles 3:00p.m.) CST
E-mini Nasdaq-100 Index Futures symbol: ES
S&P 500 News
According to Yahoo Finance, the S&P 500 Index experienced a 25% growth in 2023. Morningstar further reports that the S and P 500 index has gained 2.5% since the beginning of January, even though it slipped less than 0.1% on 26th January, ending its streak of record closes as the rally in the technology sector lost steam.
Yahoo Finance further reported that the S&P 500's upward trajectory has been propelled by a group of mega-cap tech companies often referred to as the "Magnificent Seven." These companies include:
- Apple (AAPL)
- Amazon (AMZN)
- Alphabet (GOOGL)
- Meta Platforms (META)
- Microsoft (MSFT)
- Nvidia (NVDA)
- Tesla (TSLA)
The exceptional performance of these tech giants has significantly contributed to the overall positive movement of the S&P 500.
S&P 500 Price
According to Reuters, S&P 500 Index stands at 4,890.97 points as of 29th January 2024. Click to find out the price of S&P 500 today.
What is the S&P 500 prediction for 2024?
According to Forbes, analysts are projecting the S&P 500 outlook earnings growth to be 11.5% in 2024. However, optimism varies across market sectors, with the energy sector having the highest percentage of analyst "buy" ratings at 64%, followed by communication services at 62%. On the other hand, the consumer staples sector has the lowest percentage of analyst "buy" ratings at just 47%.
The consensus 12-month analyst price target for the S&P 500 is 5,090, indicating approximately a 6% upside from current levels. Brad McMillan, chief investment officer for Commonwealth Financial Network, suggests that additional upside for the S&P 500 in 2024 may be limited, especially after its strong performance in 2023.
Start Trading With Orient Futures Singapore
Being an Overseas Intermediary of Shanghai International Energy Exchange (INE), Dalian Commodity Exchange (DCE), and Zhengzhou Commodity Exchange (ZCE), when foreign clients participate in internationalised futures contracts in these Chinese markets with us, they have direct access to trading, clearing, and settlement. Our parent company, Shanghai Orient Futures, is the largest broker in terms of aggregated volume across the five regulated exchanges in China.
Orient Futures Singapore also currently holds memberships at the Singapore Exchange (SGX), Asia Pacific Exchange (APEX), and ICE Futures Singapore (ICE SG). Starting August 2023, corporate clients can also gain access to the B3 Exchange through us.
We provide bespoke services to our professional clients, tailored to their corporate and individual needs. Our team will be there for you 24 hours on trading days to provide a one-stop portal for all your trades, with simple processes and an intuitive user interface that has low or near-to-zero latency.
