stockmarketwalk The performance of S&P 500 index may depend on a variety of factors including macroeconomic factors such as inflation, unemployment rates, as well as company-specific factors through the index constituents such as sales, growth, or profitability. Let’s see a brief introduction to the index and its performance by sector.
Introduction
The S&P 500 is a stock market index that tracks 500 of the largest American companies by market capitalization. The index is a market indicator for the U.S. stock market, and it is one of the most followed equity indices in the world. In addition, it is a major benchmark for many institutional investors.
The S&P 500 is a market capitalization-weighted index that is made up of stocks from different sectors like energy, financial, healthcare, technology, etc. It represents a broad range of industries in the United States economy. The index was created and expanded to its 500 constituents in 1957 and is calculated by Standard & Poor’s (S&P).
The Index Committee selects the stocks based on their market size, liquidity and sector representation. However, a company listed in the S&P 500 index has to meet certain requirements to be eligible for inclusion in the index. This includes having a minimum market cap of $14,6 billion. Secondly, the stock must be listed on a national stock exchange for at least six months out of 12 months. Last but not least, the monthly trading volume must reach at least 250,000 shares on a six month basis.
Performance of S&P 500
The Standard and Poor’s 500 index is in a falling trend since the beginning of the year. The negative economic forecasts weighed on the index, as well as factors such as fears from recession and shortage of energy. Following to the deteriorating economic outlook, the S&P 500 index dropped in price by -25,25% in Q1-Q3 of 2022.
What are the sectors of S&P 500 and how do they perform in 2022?
The stock market index S&P 500 measures the performance of components from variety of sectors including Consumer Discretionary, Consumer Staples, Energy, Financials, Health Care, Industrials, Information Technology, Materials, Real Estate, Telecommunication Services and Utilities.
The energy sector significantly exceeded the preliminary expectations in the shadow of energy crisis, while the investors put the information technology, telecommunication services and consumer discretionary sectors under pressure in recent months.
S&P500 sectors by performance in Q1-Q3 of 2022
Top gainers
- S&P 500 Energy +26,78%
- –
Top loser sectors
- S&P 500 Telecommunication Services -39,77%
- S&P 500 Information Technology -32,62%
- S&P 500 Consumer Discretionary -32,19%
- S&P 500 Real Estate -29,75%
- S&P 500 Materials -23,86%
Table
| Symbol | Name | Performance in Q1 (01.01. - 31.03.) | Performance in H1 (01.01. - 30.06.) | Performance in Q1-Q3 (01.01. - 30.09.) |
|---|---|---|---|---|
| GSPE | S&P 500 Energy | 33.52% | 37.38% | 26.78% |
| SP500-55 | S&P 500 Utilities | 4.95% | 4.26% | -7.71% |
| SP500-35 | S&P 500 Health Care | -2.03% | -5.28% | -13.3% |
| SP500-30 | S&P 500 Consumer Staples | -1.63% | -3.86% | -13.52% |
| SP500-20 | S&P 500 Industrials | -1.93% | -8.94% | -21.07% |
| SP500-40 | S&P 500 Financials | -3.12% | -14.9% | -23.36% |
| SP500-15 | S&P 500 Materials | -1.49% | -12.55% | -23.86% |
| GSPC | S&P 500 | -5.55% | -13.89% | -25.25% |
| SP500-60 | S&P 500 Real Estate | -5.97% | -13.72% | -29.75% |
| SP500-25 | S&P 500 Consumer Discretionary | -11.63% | -22.58% | -32.19% |
| SP500-45 | S&P 500 Information Technology | -9.48% | -18.28% | -32.62% |
| SP500-50 | S&P 500 Telecommunication Services | -12.6% | -28.41% | -39.77% |
Source: Yahoo Finance database (Historical data: Adjusted close price)
