Market indices

Market indices are measurements that reflect the overall performance of a specific group of stocks, bonds, or other investments. They act as a barometer for the health of a particular segment of the financial markets. For example, the S&P 500 tracks 500 large U.S. companies, giving an idea of the broad stock market’s direction. When the index rises, it suggests that, on average, the included investments are gaining value; when it falls, they’re losing value. Investors use indices to gauge market trends, compare performance, and make informed decisions.