The SPX500 CFD tracks the S&P500, or simply the S&P, it's one of the largest and most widely followed stock indices in the world and is published by Standard and Poor’s as it tracks the prices of the 500 largest companies in the US. The index is also tracked by the largest ETFs in the world and the most actively traded futures contracts. Large holdings include Apple, Microsoft, Amazon and Berkshire Hathaway.
Launched in 1957, the SPX500 was interestingly enough was one of the first indexes to be published on a daily basis. Now it is used to gauge the overall economic health of the United States. The S&P500 consists of the companies that trade on both the New York Stock Exchange and Nasdaq. There are other S&P indexes available to trade and they cover a wide range of different sectors and industries, an example of this is the S&P Composite Index.
The index tracks the market capitalisation of the companies which form the S&P500. The market cap is defined by the number of shares of stock that a company has issued, and is calculated by multiplying the number of shares a company has issued by its stock price. However, this index is weighted by a float-adjusted market cap, that means it will only measure the shares that are publicly listed and none that are held privately.
Just like the other indices, there is a committee in charge of deciding what companies can be part of the index, and is decided through the examination of liquidation levels, size and the industry. The index is reviewed quarterly, in March, June, September, and December. The company must also be in the United States and should have a minimum market cap of at least $6.1 billion, and 50% of its stock should be made available to the public. There are also other requirements, including the demand for the company's stock price to be $1 per share and a copy of its 10-K annual report.
SPX500 Historical data
Black Monday, 1987: On 19th October (referred to as Black Monday) the SPX500 faced its largest loss by 20.5% decrease. However, the indexes all-time high was quite recent. In 2019 the SPX500 finished with over 3,000 points, marking its all-time high.
How to trade SPX500 with Eightcap?
With Eightcap you only need one trading account to trade CFDs on the SPX500 index and other asset classes around the world. In addition, Eightcap offers clients the MetaTrader 4 and 5 platforms, widely regarded the most advanced trading platforms in the world. Signing up is easy and in just a few minutes you will be ready to start your trading journey.