Discover Global Stock Indices: Focus on the U.S. Market and Leading Stocks

The global financial market has always been a focal point for investors, among which the world stock indices, especially those from the United States, play an extremely important role. If you want to better understand investment opportunities and current market trends, it is essential to stay informed about indices such as Dow Jones, S&P 500, Nasdaq Composite, along with major stocks like Microsoft, Apple, Tesla, Google.

Scale and Position of the US Stock Market in the Global Context

There is no doubt that the US stock market is the leading market worldwide. With a market capitalization accounting for up to 75% of the total global market cap, it acts as the main driver for other markets. The two largest exchanges - New York Stock Exchange (NYSE) and Nasdaq Stock Market - are trading hubs for thousands of major companies across various sectors.

According to data from Intercontinental Exchange, as of September 30, 2022, the total market capitalization of the US stock market exceeded $46.5 trillion. The NYSE alone has nearly $30.1 trillion, demonstrating its clear dominance in the global arena.

The Role of Indices in Measuring Market Performance

With thousands of listed companies, monitoring the entire market becomes complex. Therefore, global stock indices in general and US indices in particular are created as tools for economists, fund managers, traders, and investors to assess overall market conditions.

S&P 500 tracks 500 of the largest companies, accounting for about 70% of market value, making it the most reliable indicator. Dow Jones represents about 25% of the value, focusing on industrial sectors. Nasdaq 100 and Nasdaq Composite mainly track the technology sector.

Impressive Numbers: Growth Performance Over the Past 5 Years

Returns from investing in US indices and stocks have demonstrated the market’s attractiveness:

• S&P 500: Up 85.78% over 5 years
• Dow Jones (DJI): Up 54.13% in the same period
• Nasdaq 100 (NDX): An impressive increase of 147.43%

Leading stocks have shown astonishing growth:

• Microsoft (MSFT): Up 256.33%
• Apple (AAPL): Up 261.33%
• NVIDIA (NVDA): An extraordinary 1,908.58% increase

These figures clearly explain why global investors continue to focus on these stock indices.

Trading Methods and Profit Opportunities in US Stocks

For Vietnamese investors, directly owning US stocks faces legal restrictions. However, margin trading through CFD (Contract for Difference) tools opens another way to participate in the market. This method allows investors to exploit price differences and profit from both rising and falling markets without owning the actual securities.

Trading Hours and Important Notes on Timeframes

The US market operates according to a specific schedule:

Regular Trading Hours: Monday to Friday, 8:30 PM to 2:00 AM (Vietnam Time)

After-Hours Trading: Tuesday to Friday, 3:00 AM to 5:30 AM

Pre-Market Trading: Monday to Friday, 7:00 PM to 8:30 PM

Note that these times may change due to daylight saving time adjustments.

List of Promising US Stocks for Growth

In 2024, notable stocks include:

SWAV (Shockwave Medical, Inc.): Up 828.8% VKTX (Viking Therapeutics, Inc.): Up 795.13% LWAY (Lifeway Foods, Inc.): Up 787% ZJYL (Jin Medical International Ltd): Up 750% SMID (Smith-Midland Corporation): Up 491.89% PRAX (Praxis Precision Medicines): Up 394.39% INLX (Intellinetics, Inc.): Up 285.12% DJT (Digital World Acquisition Corp): Up 262% DERM (Journey Medical Corporation): Up 181.68%

Although 2022-2023 experienced significant volatility due to various factors (energy crisis, war, inflation, tightening monetary policies), these stocks have recovered strongly and show considerable growth potential.

Detailed Analysis of the Four Main US Stock Indices

Dow Jones Index (DJIA)

Created in 1896 by Charles Dow, this index focuses on 30 leading companies. It accounts for about 25% of the total market value and is considered a barometer of US economic health. On March 27, 2024, the index recorded 39,411 points.

S&P 500 Index

Established in 1957, developed by S&P Dow Jones Indices, this index includes the 500 largest companies, representing up to 70% of the US stock market value. As of March 27, 2024, it stood at 5,220 points, with a total market cap of $43.9 trillion.

Nasdaq Composite

Founded in 1971, Nasdaq Composite includes all stocks listed on Nasdaq, not only large companies but also small and highly speculative ones. This causes greater volatility but also better reflects the tech sector’s situation. The index was at 18,210 points on March 27, 2024.

Nasdaq 100 (NAS100)

Part of Nasdaq, this index was launched in 1985 and focuses on the 100 largest Nasdaq companies. It has a market cap of $18.24 billion and was at 18,269 points on March 27, 2024.

Recovery Outlook: Current Trends of the Indices

After significant fluctuations from early 2022 to late 2023, global stock indices, especially US indices, are beginning to show signs of recovery:

Dow Jones: Increased by 5.59% in the first 3 months of 2024 after the Fed signaled interest rate cuts.

S&P 500: Rose nearly 10% in the same period, indicating market confidence.

Nasdaq Composite: Gained 2.28% in March 2024 alone, following a similar trend.

Nasdaq 100: Surged 24.17% over the past 6 months, surpassing 18,000 points in March 2024.

Factors Shaping the Future of the Market

Monetary Policy of the Federal Reserve (Fed)

Expectations are that the Fed will cut interest rates. According to Goldman Sachs forecasts:

• 3 rate cuts in 2024
• 4 rate cuts in 2025
• 1 rate cut in 2026

This will help stabilize long-term interest rates around 3.25-3.5%.

Geopolitical Conflicts

The Russia-Ukraine war and Israel-Hamas conflict could significantly impact financial markets. If Middle East tensions escalate, investor David Bahnsen predicts the stock market could decline by 7-10%. During uncertain times, investors often turn to safe-haven assets like gold and Bitcoin.

Conclusion

The US stock market and global stock indices are currently experiencing a promising phase. The recovery after challenging years has opened many opportunities for savvy investors. Understanding the structure, trends, and influencing factors of US stock indices is key to making informed investment decisions in this era.