What is the S&P 500 — plain English
The S&P 500 is a single number that tracks how 500 of the biggest American companies are doing as a group. Apple, Microsoft, Amazon, Google are all inside it. When it goes up, it means those companies are worth more. When it falls, it means investors are selling. Most pension funds and 401(k) accounts track it.
What makes the S&P 500 move
US Federal Reserve interest rate decisions
Quarterly earnings from big tech companies
US unemployment and jobs data
Inflation numbers — CPI and PCE
Recessions or economic slowdowns
Company-specific news for Apple, Microsoft and other giants
Wars or pandemics affecting global trade
The single biggest driver is interest rates. Higher rates make bonds more attractive versus stocks, so money flows out of equities and the S&P 500 falls. Lower rates push money into stocks. Everything else is secondary.
What happened at real events
These are actual price movements at real events. Not simulated.
August 5, 2024
Japan raises interest rates, triggering a global market sell-off
Before
5,400
→
After
5,100
-300 pts ↓
The yen carry trade collapsed. Traders who borrowed cheap yen to buy US stocks were forced to sell. The S&P 500 dropped sharply within hours.
September 18, 2024
Fed cuts rates by 0.5% — first rate cut since 2020
Before
5,620
→
After
5,710
+90 pts ↑
Cheaper borrowing costs are good for company profits. Lower rates also make bonds less attractive, pushing money into stocks instead.
November 6, 2024
Donald Trump wins the US Presidential election
Before
5,700
→
After (24h)
5,930
+230 pts ↑
Markets expected tax cuts and deregulation under Trump. Both are positive for corporate earnings. The S&P 500 surged to a new all-time high.
Best brokers for S&P 500 trading
Ranked by spread and platform quality for index CFD trading.
Key dates to watch
These events consistently move the S&P 500. Plan around them.
| Event | Frequency | Typical move |
|---|---|---|
| US Non-Farm Payrolls | First Friday of every month, 13:30 UTC | 20–80 pts |
| Fed interest rate decision | 8 times per year | 50–200 pts |
| US CPI inflation data | Monthly, around 12th of month | 30–100 pts |
| Big tech earnings (Apple, Microsoft etc) | Quarterly | 30–150 pts |
| US GDP data | Quarterly | 20–60 pts |
Trading index CFDs on leverage means losses can exceed your initial deposit. The S&P 500 can move 5% or more in a single day during major events. Never risk money you cannot afford to lose.