What are the S&P 500, Dow Jones, and NASDAQ? A Simple Guide

The S&P 500, Dow Jones Industrial Average, and NASDAQ Composite are the three pillars of US stock market measurement. Each index emphasizes different sectors of the economy. The S&P 500 is broad and widely trusted as a true reflection of market health. The Dow, with its 30 blue-chip companies, is a traditional measure of stability and industrial might. The NASDAQ, driven by technology and growth firms, captures innovation and the future of business.

Together, they shape how investors, policymakers, and the public understand the state of the US economy. In September 2025, all three are trading near record highs, supported by hopes of rate cuts and strong performance from technology companies. However, the risks from inflation pressures to global uncertainties still remain.

For anyone following the markets, these indices remain the key to understanding not just daily stock movements but the broader story of economic confidence, growth, and future prospects.