Major Global Stock Market Indices

Global stock market indices are essential for understanding international financial markets. They reflect the performance of major companies across different countries, providing insights into economic health and investor sentiment, which are crucial for making informed investment decisions.

1. S&P 500 (United States)

   • Comprises 500 of the largest publicly traded companies in the U.S., representing about 80% of the total market capitalization.
   • Widely regarded as the best single gauge of the U.S. equities market and a key indicator of the overall health of the economy.
   • Market-capitalization weighted, meaning larger companies have a greater impact on the index's performance.

2. Dow Jones Industrial Average (United States)

   • Consists of 30 significant publicly traded companies, primarily in the industrial sector, making it one of the oldest stock indices.
   • Price-weighted index, where companies with higher stock prices have a greater influence on the index's movements.
   • Often used as a barometer for the overall performance of the U.S. stock market and investor sentiment.

3. NASDAQ Composite (United States)

   • Includes over 3,000 stocks listed on the NASDAQ stock exchange, heavily weighted towards technology and internet-based companies.
   • Known for its high volatility and growth potential, reflecting the performance of tech-heavy sectors.
   • Market-capitalization weighted, similar to the S&P 500, allowing larger companies to have a more significant impact.

4. FTSE 100 (United Kingdom)

   • Comprises the 100 largest companies listed on the London Stock Exchange, representing a significant portion of the UK market.
   • Market-capitalization weighted, providing a snapshot of the performance of major UK corporations.
   • Often used as an indicator of the health of the UK economy and investor confidence.

5. DAX (Germany)

   • Represents the 30 largest and most liquid German companies traded on the Frankfurt Stock Exchange.
   • Market-capitalization weighted, reflecting the performance of major German corporations and the overall German economy.
   • Considered a key indicator of economic health in the Eurozone.

6. CAC 40 (France)

   • Comprises 40 of the largest publicly traded companies on the Euronext Paris exchange.
   • Market-capitalization weighted, providing insights into the performance of major French corporations.
   • Serves as a barometer for the French economy and investor sentiment in Europe.

7. Nikkei 225 (Japan)

   • A price-weighted index consisting of 225 large, publicly owned companies in Japan, making it one of the most recognized indices in Asia.
   • Reflects the performance of the Japanese economy and is often used as a benchmark for Japanese stocks.
   • Known for its historical significance and influence on global markets.

8. Shanghai Composite Index (China)

   • Comprises all stocks traded on the Shanghai Stock Exchange, including A-shares and B-shares.
   • Market-capitalization weighted, reflecting the performance of the Chinese economy and investor sentiment.
   • Considered a key indicator of the health of China's financial markets and economic growth.

9. Hang Seng Index (Hong Kong)

   • Includes the largest companies listed on the Hong Kong Stock Exchange, representing a significant portion of the market capitalization.
   • Market-capitalization weighted, providing insights into the performance of major corporations in Hong Kong.
   • Often viewed as a barometer for the Chinese economy and investor confidence in the region.

10. SENSEX (India)

    • Comprises 30 of the largest and most actively traded stocks on the Bombay Stock Exchange (BSE).
    • Market-capitalization weighted, reflecting the performance of major Indian corporations and the overall Indian economy.
    • Serves as a key indicator of market trends and investor sentiment in India.