Three US stock indices dominate global trading. Each is built differently, which affects how it moves.
| Index | What it holds | Weighting | Character |
|---|---|---|---|
| S&P 500 | 500 large US companies | By market value | The benchmark for US stocks; steadier |
| Nasdaq-100 | 100 largest non-financial companies on Nasdaq | By market value (modified) | Tech-heavy; larger moves |
| Dow Jones Industrial Average | 30 large US companies | By share price | Oldest; less representative |
Trading them through futures
| Contract | Value per point | Tick | Value per tick |
|---|---|---|---|
| E-mini S&P 500 (ES) | $50 | 0.25 | $12.50 |
| Micro E-mini S&P 500 (MES) | $5 | 0.25 | $1.25 |
| E-mini Nasdaq-100 (NQ) | $20 | 0.25 | $5.00 |
| Micro E-mini Nasdaq-100 (MNQ) | $2 | 0.25 | $0.50 |
| E-mini Dow (YM) | $5 | 1 | $5.00 |
| Micro E-mini Dow (MYM) | $0.50 | 1 | $0.50 |
What moves them
- Earnings, especially from the largest companies, which make up a big share of each index.
- Interest rates and bond yields: rising yields tend to weigh on stocks, and most of all on high-growth tech.
- US data such as CPI and jobs reports at 08:30 New York time, and Federal Reserve decisions at 14:00.
- Risk appetite: indices rise in risk-on periods and fall sharply in risk-off ones (Module 11).
Worked example
You buy 1 NQ at 18,500 with a stop at 18,460 and a target at 18,600.
Risk: 40 points × $20 = $800. Reward: 100 points × $20 = $2,000. With 1 MNQ instead, the same trade risks $80.
Key takeaways
- The S&P 500, Nasdaq-100 and Dow are built differently; the Nasdaq-100 is the most tech-heavy and volatile.
- Futures (ES, NQ, YM and their micros) trade nearly 24 hours, with a daily break at 17:00 New York time.
- Know the dollar value per point before trading: $50 for ES, $20 for NQ, $5 for YM.
- Earnings, yields, US data and risk appetite are the main drivers.