What is S&P 500 (Standard and Poor's 500)?

The Standard and Poor's 500 (S&P 500) is one of the most famous stock indices in the world. The S&P 500 is made up of 500 of the largest companies listed on stock exchanges in the United States and consists of many of the largest tech stocks on the planet. These include Apple Inc., Microsoft, Amazon.com, Facebook, Alphabet Inc. (class A & C), Tesla Inc., Berkshire Hathaway, JPMorgan Chase & Co., and Johnson & Johnson. The S&P 500 is so powerful that it is often analyzed to forecast the direction of the U.S. and global economies.