The stock market index: importance of the Dow Jones, S&P 500 and Nasdaq in the economy

Authors

DOI:

https://doi.org/10.5377/aes.v1i2.11443

Keywords:

Stock Market Index, Market Capitalization, Dow Jones, S&P 500, Nasdaq.

Abstract

Financial market indices reflect the future of the economy and mainly in the markets where they are developed, it is common to observe in the economic news the perspectives and behavior of these indices, therefore, it is important to know and delve into its corresponding functioning. The study is based on a descriptive analysis using synthesis and collecting data from secondary sources to establish the facts of the functionality of these market tools and how the stock price of these markets has evolved. The stock market price of these indices is approached in a periodicity from the year 2000 to the year 2020 with the use of technical analysis through indicators and graph analysis. It is the objective of this study in the first instance to define some important concepts about the stock market indices, subsequently the history of the Dow Jones index, the Dow Theory and its similarity with the Robert Elliot Theory are explained, the behavior and evolution of the market. An analysis is developed on the S&P 500 index explaining how it is formed and elaborated in addition to its behavior and evolution. Finally, the Nasdaq 100 is described, how this technological index functions, reflecting the swings of the US economy and how it is affected by international events.

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Published

2020-12-30

How to Cite

Palma Canales, M. (2020). The stock market index: importance of the Dow Jones, S&P 500 and Nasdaq in the economy. Scientific Journal "Notes on Economy and Society&Quot;, 1(2), 11–26. https://doi.org/10.5377/aes.v1i2.11443

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Artículos