In the United States, the S&P 500, the Dow Jones Industrial Average and the Nasdaq Composite are the three indices that are most closely followed by both the media and investors. These three indices are part of a larger group of around 5,000 indices that make up the US stock market. Some indices focus on a smaller subset of the market. For example, the Nasdaq stock index is closely tracking the performance of technology companies.
If you want to know how technology stocks are doing, you should take a look at the Nasdaq index. The Dow Jones Industrial Average (DJIA) is one of the oldest stock indices and it consists of 30 of the largest stocks in the US. This index is a representation of the entire Nasdaq stock market. The Russell 2000 index is another benchmark for smaller US stocks.
Unlike the other two major stock indices in the world, Nasdaq also includes a number of emerging companies. In addition, out of the three major indices, Nasdaq has a higher percentage of foreign companies in its analysis.
