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David P. McCabe,
WMCP®, ChFC®, CLU®
Financial Planner
Nathaniel D. High, RICP®
Financial Planner
Nicholas J. Over, CFP®
Financial Planner
Sara E. Martin
Client Relations Manager
Jennifer A. McCabe
Client Relations Specialist
jennifer.mccabe@prudential.com
Centuria Financial Group
2333 Baltimore Blvd Suite B
Finksburg, MD 21048
Phone: 443-952-7232
September/October 2023
A Look at the Major Stock Indexes
There are approximately 5,000 indexes that represent the U.S. equity market. While you rely on these indexes as indicators of how the stock market is performing, you cannot invest in any index. Here’s an overview of the most widely used.
What Is an Index?
An index measures the performance of a group of stocks and provides a snapshot of what is happening across specific industries, businesses, and the U.S. economy as a whole. Indexes are weighted by factors such as price and market capitalization — the total value of a company’s outstanding stock shares.Dow Jones Industrial Average (DJIA)® - The First Index
The DJIA is a price-weighted index of 30 of the largest U.S blue-chip companies trading on the New York Stock Exchange and the Nasdaq. A price-weighted index gives stocks with the highest prices the most weight. The index got its start in 1886, after Charles Dow, Edward Jones, and silent financial partner Charles Bergstresser founded their own news agency called The Wall Street Journal. It was during this time that Dow developed his index as a way to measure stock market performance. As the oldest index, the DJIA is considered a gauge of the broader U.S. economy.S&P (Standard & Poor's) 500®
The S&P comprises 500 of the top companies in the U.S. and represents 80 percent of the total value of the U.S. stock market. Stocks are selected primarily based on market capitalization. The S&P 500 typically serves as an indicator of movement in the entire market.The Nasdaq Composite Index®
The Nasdaq (National Association of Securities Dealers Automated Quotations) is a market cap-weighted index of all stocks trading on the Nasdaq stock exchange. The index is heavily weighted in the tech sector and includes stocks in software, biotech and semiconductor industries, among others.A Few More
The Wilshire 500® — often called the “total stock market index” — includes all publicly traded companies based in the U.S.The Russell 2000® is an index of 2,000 small-cap stocks.
The S&P Midcap 400®, Russell Midcap®, and Wilshire U.S. Midcap Index® represent the midcap market.
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Centuria Financial Group is not affiliated with Prudential Financial. Centuria Financial Group sells insurance products of Prudential Financial's affiliated insurance companies in addition to products of non-affiliated insurance companies. Centuria Financial Group is authorized to sell and service certain insurance products of Prudential Financial companies as well as use this material. Centuria Financial Group and its representatives do not give tax or legal advice. Please consult with your own advisors regarding your particular situation. Offering financial planning and investment advisory services and programs through Pruco Securities, LLC (Pruco), under the marketing name Prudential Financial Planning Services (PFPS), pursuant to a separate client agreement. Offering insurance and securities products and services as a registered representative of Pruco, and an agent of issuing insurance companies. 1-800-778-2255. Sara E. Martin and Jennifer McCabe are employed by David McCabe and not The Prudential Insurance Company of America or its subsidiaries.
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