History of S&P 500 in Timeline
The S&P 500 is a major U.S. stock market index that tracks the performance of 500 of the largest publicly traded companies. Representing about 80% of the total U.S. stock market capitalization, the S&P 500 has a combined market cap exceeding $43 trillion as of January 2024, making it a key indicator of the American economy.
1906: Foundation of Standard Statistics Bureau
The Standard Statistics Bureau, which would later evolve into Standard & Poor's, was founded in 1906.
1923: First Stock Market Index by Standard Statistics Company
In 1923, Standard Statistics Company developed its first stock market index, which consisted of the stocks of 233 U.S. companies and was computed weekly.
1926: Inception of S&P Index
Since its inception in 1926, the S&P index has achieved an approximate compound annual growth rate of 9.8% including dividends. The standard deviation of the return over this period has been 20.81%.
1941: Merger to Form Standard & Poor's
In 1941, Poor's Publishing merged with Standard Statistics Company, forming the entity known today as Standard & Poor's.
March 4, 1957: Expansion to 500 Companies
On March 4, 1957, the S&P index was expanded to include 500 companies and was renamed the S&P 500 Stock Composite Index.
1962: Ultronic Systems Becomes Compiler
In 1962, Ultronic Systems became the compiler of various S&P indices, including the S&P 500 Stock Composite Index.
August 31, 1976: Launch of First Mutual Fund Tracking the Index
The Vanguard Group offered the first mutual fund to retail investors that tracked the S&P 500 index on August 31, 1976.
April 21, 1982: Introduction of Futures Trading
The Chicago Mercantile Exchange began trading futures based on the S&P 500 index on April 21, 1982.
1982: Introduction of Futures Trading
The Chicago Mercantile Exchange began trading futures based on the S&P 500 index in 1982.
July 1, 1983: Options Trading on S&P 500
On July 1, 1983, the Chicago Board Options Exchange began trading options based on the S&P 500 index.
1986: Real-Time Index Updates
Beginning in 1986, the S&P 500 index value was updated every 15 seconds, or 1,559 times per trading day, with price updates disseminated by Reuters.
January 22, 1993: Launch of SPDR ETF
On January 22, 1993, the Standard & Poor's Depositary Receipts exchange-traded fund, issued by State Street Corporation, began trading.
September 9, 1997: Introduction of S&P E-mini Futures
CME Group introduced the S&P E-mini futures contract on September 9, 1997.
2005: Transition to Float-Adjusted Capitalization-Weighting
In 2005, the S&P 500 index transitioned to a public float-adjusted capitalization-weighting methodology.
September 17, 2021: Final Trading Day for Original SP Big Contract
September 17, 2021, marked the final trading date for the original SP big contract, which had begun trading in 1982.
October 2021: Allegations of Companies Purchasing Ratings
In October 2021, Bloomberg News reported that a study alleged some companies were purchasing ratings from S&P Global to increase their chances of entering the S&P 500 index, even without meeting full criteria.
December 29, 2023: Top Companies by Market Capitalization in S&P 500
As of December 29, 2023, the nine largest companies in the S&P 500 index accounted for 30.9% of its market capitalization. These companies were Apple, Microsoft, Amazon.com, Nvidia, Alphabet, Meta Platforms, Tesla, Berkshire Hathaway, and JPMorgan Chase.
January 2024: S&P 500 Market Capitalization Update
In January 2024, the S&P 500's aggregate market capitalization surpassed $43 trillion, representing approximately 80% of the total market capitalization of U.S. public companies.