LESSON 4 OF 16 · 2 MIN
Indices: the FTSE 100, S&P 500 and friends
IN SHORTAn index tracks a basket of shares to show how a whole market is doing. When people say the market fell, they usually mean an index fell.
An index is a number that tracks a group of shares. The FTSE 100 follows the 100 largest companies on the LSE Main Market; the FTSE 250 the next 250; the S&P 500 about 500 large US companies; the Nasdaq Composite is heavy in technology.
Most big indices are weighted by company size, so the largest companies move them most.
KEY POINTA company can rise on a day the index falls. The index is the average mood, not every company's story.
Indices also react to things that affect many companies at once: interest rates, inflation figures, oil prices and currency moves. That is why TradingFloor AI shows economic events next to company news.
Try it: See today's market call and the economic events that could move indices.
Open Calls & eventsEducation only. TradingFloor AI does not give investment advice. Prices can fall as well as rise and you may get back less than you invest.