Smart Finance

Term

Market-cap weighting

The bigger the company, the more it weighs in the index. A handful of giant tech companies can move the S&P 500 on their own; company number 400 is almost invisible.

In pesos: If Apple falls 3% it can drag the whole index while 300 smaller companies rise.

Where to go deeper

4/4 5 min Read Why the S&P 500 goes up or down What the S&P 500 actually measures, the four forces that move it, and why the daily number is mostly noise.

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Educational content only: not financial, investment or tax advice. The numbers are examples to understand the idea, not a forecast or a recommendation.