Financial indices

Financial indices are statistical measurements that track the performance of a specific group of stocks, bonds, or other financial instruments, providing an overall snapshot of market trends. They act as benchmarks to gauge how certain segments of the market or entire economies are doing. For example, the S&P 500 tracks 500 large U.S. companies, reflecting the health of the stock market. Investors use these indices to assess market performance, make investment decisions, and compare individual investments’ results against broader market trends.