US Stock Market Indices
Currently, three major indices dominate the US securities market: the Dow Jones Industrial Average, the S&P 500 Index, and the Nasdaq Composite Index.
Dow Jones Industrial Average: Introduced in May 1896, the Dow tracks the performance of the 30 largest and most well-known US companies across various industries. Over its 125-year history, the Dow has grown from an initial value of 40.94 points to 36,338 points at the end of 2021, achieving a remarkable 887.6-fold increase with an average annual return rate of 5.58%.
S&P 500 Index: Compiled by Standard & Poor's in 1957, the S&P 500 measures the performance of 500 major US companies' stocks. Covering a broad spectrum of industries, the index includes well-known companies like Boeing, General Electric, Coca-Cola, Procter & Gamble, Apple, and Google. From its inception to the end of 2021, the S&P 500 achieved an average annual growth rate exceeding 12%.
Nasdaq Composite Index: Since its establishment in February 1971, the Nasdaq has become the most widely followed market index in the US It is calculated based on the common stock of all domestic and foreign companies listed on the Nasdaq market. The index comprises rapidly growing technology, telecom, and biotech companies, with notable constituents including Microsoft, Intel, Amazon, and others. From its initial value of 100 points, the Nasdaq grew to 15,645 points at the end of 2021, representing a 156.5-fold increase over 51 years, with an average annual return rate of approximately 10.4%.