S&P 500 vs Dow Jones: What Is the Difference?

01

S&P 500

A broad index of large US companies, weighted by market value. It is widely used as a benchmark for US stocks.

02

Dow Jones

The Dow tracks 30 large US companies and is price-weighted, so higher-priced stocks have more influence.

03

Different construction

Market-cap weighting and price weighting can make the indexes react differently to the same news.

04

One day is not a trend

Short-term performance does not predict future returns. Sector mix and weighting also affect results.

05

Use indexes as tools

Indexes are useful benchmarks, not a complete picture of the market or a guarantee of returns.

Sources

Sources & notes

S&P Dow Jones Indices · SEC · Cover photo: Unsplash

Figures and rules can change. Verify current details before acting.

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Educational information, not financial advice.