US Stock Market: Investing remains today an important lever for growing your wealth. The world of the stock market has a strong appeal. Alongside the markets of Europe and Asia, the US stock market is a major pole for investors. The American market is even considered the reservoir of the best investment opportunities. Discover in these lines how to invest in US stocks, the many components of this market and how to grow your capital there.
What Is the US Stock Market?
To identify an online exchange just like a company, the first landmark is its name. Thus, the name of the stock exchange is an essential characteristic for telling the many existing ones apart. As one of the very first marketplaces where currencies and capital meet, the US stock market has gathered various names over time. Some call it the USA market or simply the US market. Failing that, you may also come across the names « world’s largest stock exchange » or » United States stock market « .
Alongside these general names, the US stock market is also referred to by the names of its three major components (themselves stock exchanges). The United States market rests on an association of three pillars. Each of them represents a stock exchange and is assigned to overseeing the finance sector of American and foreign companies, which makes this trio the backbone of NYSE Nasdaq investing. You will find in this market the New York Stock Exchange (NYSE), the Nasdaq and the Chicago Stock Exchange (CHX).
Where Is the US Stock Market Located?
The location of the United States market is, most often, embodied by Wall Street. In reality, this street has become the emblem and the symbol of the American financial system. Historically, Wall Street was a narrow lane in Manhattan laid out to limit the encroachment of the English on American soil.
After the fall of that wall, the first institutions born there are today the heart of the economic system. Thus, on that Manhattan street in New York are based the two largest American exchanges. The last one (the Chicago Stock Exchange) is based in the city of Chicago.
What Are the Main Stock Indexes of the US Stock Market?
- The Dow Jones: Symbol of the US Stock Market: The Dow Jones Industrial Average is not only the very first American stock index but also the oldest one in the world (created in 1898). It is the result of the company named Dow Jones and Company. Its authors are none other than two journalists, Charles Dow and Edward Jones. This index brings together the 30 most traded stocks on the NYSE and Nasdaq exchanges respectively. The index plays the role of a lighthouse for investors. Indeed, it indicates the direction of share prices. In other words, the Dow Jones is a measure (a barometer) for all investors.
- The S&P 500: Integrating Index of the US Stock Market: Better known under the name Standard and Poor’s 500, the S&P is a major index of the US market. It was created by two companies that each gave it part of their name (Standard; Poor’s). Indeed, it brings together 500 large American companies. The criterion used to select these companies is none other than market capitalization. Here, the share price and the position within the industry sector are not taken into consideration. This is why the SP 500 represents nearly 80% of the entire US market in terms of capitalization. Since its launch on March 4, 1957, this index was taken over in 1966. After that operation, the results and the strength of the index grew considerably. The weighting of the SP 500 is the free float. This means that the shares that enter public trading are adjusted according to the market capitalization of the companies. In statistical terms, the SP 500 represents a return of 12.75% over a ten-year period. The largest companies in the index are Apple, Microsoft, Amazon, Facebook, Alphabet, Tesla and JPMorgan – for many Europeans, these are the best US stocks for beginners.
- The Nasdaq: Composite of the US Stock Market: The Nasdaq index represents nearly 3,500 companies listed on that same exchange. It is also weighted according to the market capitalization of the companies. The US Nasdaq market is an index made up of:
- American certificates relating to foreign stocks
- Companies specializing in real estate investment
- Common stocks
- Reflect shares
- Holdings within limited partnership companies
The Main Companies Listed on the US Stock Market
| Company Name | Sector |
|---|---|
| PayPal | Finance |
| Estée Lauder | Investment |
| Vilage Supermarket | Agri-food |
| JetBlue | Entertainment |
| Goldman Sachs | Investment |
| Foot Locker | Sport |
| Healthcare trust | Health |
| Carnival Corp | Technology |
| Boardwalk pipeline partners | Oil |
| Bed Bath and Beyond | Services |
| Air lease | Real estate and construction |
| Allete | Transport and logistics |
| Amkor technology | Technology |
| Royal dutsch shell | Oil |
| Mohawk | Entertainment |
| Lennar corporation | Technology |
| Park Hotel and Resort | Industry |
| Micron technology | Technology and research |
| Lincoln national corporation | Services |
| Toll brother | Software development |
| Morgan Stanley | Hi-tech |
How to Invest in US Stocks from Europe
- Using the Services of an Online Broker – Trading on the New York Stock Exchange and on the wider world stock market is handled by brokers. For your investment, nothing beats calling on a specialist in the field: the first step is to choose a US broker for Europeans, that is, a platform that accepts residents of your country and connects you to the American exchanges. Note that in France the PEA cannot hold American shares, since it is restricted to European equities: US positions must go into a standard securities account (compte-titres). When signing up, you also complete the W-8BEN form, which certifies your status as a non-US taxpayer and applies the dividend withholding rate of the tax treaty between the United States and your country. Many platforms offer trading on the US financial market, both in individual stocks and in US market ETFs that track the S&P 500 or the Nasdaq.
- Open an account. In reality, it is from your account that you will be able to carry out all the operations.
- Put financial resources into the trading account.
- Study the market and its offerings.
- Take a position to make your placement.
- Place your investment.
- Other Ways to Invest in the US Stock Market – In this case, you benefit from advice and guidance for investing. This is known as advisory management. Even more interesting, you can leave the management of your wealth to a professional. Naturally, the latter acts according to his own analyses and according to his own benchmarks. This is called discretionary management. Keep in mind that despite these options it is important to carry out continuous monitoring and vigilance because the US stock market is very volatile. Prudence is therefore highly recommended. Since investing comes with the possibility of losing your capital, remember that it is important to only invest money you are prepared to lose.
Conclusion: What Should You Remember About the US Stock Market?
With a potential exceeding $500 billion, the US stock market is the largest financial market in the world. Every day, all the big companies drive a large flow of commercial and economic transactions there in live trading. Split into three different exchanges, the US market shows performances never equalled so far. It is founded on a weighting that calls upon the market capitalization of the listed companies.
To be eligible for one of the indexes of the US market, multiple conditions must be met. The fluctuation of share prices is an element that requires a good deal of prudence on the part of the investor. This volatility is linked to the variation of the dollar exchange rate, to the performance of companies, to global situations and crises and to the stability of oil prices.
Stocks Listed on the US Stock Market
- Google (Buy Google stock)
- Microsoft (Buy Microsoft stock)
- Xpeng (Buy Xpeng stock)
- Pfizer (Buy Pfizer stock)
- Moderna (Buy Moderna stock)
- Virgin Galactic (Buy Virgin Galactic stock)
- Apple (Buy Apple stock)
- Johnson & Johnson (Buy Johnson & Johnson stock)
- Boeing (Buy Boeing stock)
- Caterpillar (Buy Caterpillar stock)
- Snowflake (Buy Snowflake stock)
- Verizon (Buy Verizon stock)
- Netflix (Buy Netflix stock)
- Disney (Buy Disney stock)
- McDonald (Buy McDonald stock)
- Tilray (Buy Tilray stock)
- Roblox (Buy Roblox stock)
- Super Micro Computer (Buy Super Micro Computer stock)
- Procter & Gamble (Buy Procter & Gamble stock)
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- Paypal (Buy Paypal stock)
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- Walmart (Buy Walmart stock)
- Goldman Sachs (Buy Goldman Sachs stock)
- AbbVie (Buy AbbVie stock)
- Riot Blockchain (Buy Riot Blockchain stock)
- Oracle Corporation (Buy Oracle Corporation stock)
- Microstrategy (Buy Microstrategy stock)
- Lincoln Educational Services (Buy Lincoln Educational Services stock)
- Camden Property Trust (Buy Camden Property Trust stock)
- AT&T (Buy AT&T stock)
- IMAX Corporation (Buy IMAX Corporation stock)
- Altice (Buy Altice stock)
- Uber (Buy Uber stock)
- Intel Corporation (Buy Intel Corporation stock)
- Etsy (Buy Etsy stock)
- Broadcom (Buy Broadcom stock)
- StoneCo (Buy StoneCo stock)
- GameStop (Buy GameStop stock)
- Pepsico (Buy PepsiCo stock)
- Schlumberger (Buy Schlumberger stock)
- Plug Power (Buy Plug Power stock)
- BP (Buy BP stock)
- Starbucks (Buy Starbucks stock)
- Costco Wholesale (Buy Costco Wholesale stock)
- Ford (Buy Ford stock)
- Norwegian Cruise (Buy Norwegian Cruise stock)
- Herbalife Nutrition (Buy Herbalife Nutrition stock)
- Thomson Reuters (Buy Thomson Reuters stock)
- First Solar (Buy First Solar stock)
- General Motors Company (Buy General Motors Company stock)
- Home Depot (Buy Home Depot stock)
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- Dominion Energy (Buy Dominion Energy stock)
- Sea Limited (Buy Sea Limited stock)
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- Medtronic PLC (Buy Medtronic PLC stock)
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- Bed Bath & Beyond (Buy Bed Bath & Beyond stock)
- General Electric Company (Buy General Electric Company stock)
- LSI Industries (Buy LSI Industries stock)
- HP Inc (Buy HP Inc stock)
- Ballard Power Systems (Buy Ballard Power Systems stock)
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- Warner Bros Discovery Inc (Buy Warner Bros Discovery Inc stock)
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- Regeneron Pharmaceuticals (Buy Regeneron Pharmaceuticals stock)
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- Xylem Inc (Buy Xylem Inc stock)
- SVB FINANCIAL GROUP (Buy SVB Financial Group stock)
- NetApp Inc (Buy NetApp Inc stock)
- ManpowerGroup (Buy ManpowerGroup Inc stock)
- Marathon Petroleum Corp (Buy Marathon Petroleum Corp stock)
- Telefonica SA (Buy Telefonica SA stock)
- ATLANTIC AM CORP (Buy Atlantic AM Corp stock)
- MRC Global Inc (Buy MRC Global Inc stock)
- Ameris Bancorp (Buy Ameris Bancorp stock)
- Enstar Group (Buy Enstar Group stock)
- International Game Technology PLC (Buy International Game Technology PLC stock)
- Duke Energy (Buy Duke Energy stock)
- DESTINATION XL GROUP (Buy Destination XL Group stock)
- FIRST FINANCIAL NORTHWEST (Buy First Financial Northwest stock)
- CSX (Buy CSX stock)
- USANA HEALTH SC (Buy Usana Health SC stock)
- Vaxart (Buy Vaxart stock)
- GLADSTONE COMMERCIAL (Buy Gladstone Commercial stock)
- PetMed Express (Buy PetMed Express stock)
- CADENCE DESIGN SYSTEMS (Buy Cadence Design Systems stock)
- Cerus (Buy Cerus stock)
Why Invest in the US Stock Market?
The United States are the largest economic power in the world. As such, American companies deliver exceptional performances and results. Investing in the exchanges where they are listed allows you to grow your savings. In addition, you have a multitude of securities on which the operations can be carried out. Finally, the stability of the national economic situation provides a fairly stable dollar for trade.
US Stock Market Opening Hours
US stock market hours CET run from 3:30 pm to 10:00 pm: the New York Stock Exchange and the Nasdaq, just like the Chicago Stock Exchange, have a specific US stock market opening and closing system and trade from 9:30 am to 4:00 pm Eastern Time, with a one-hour shift for a few weeks around the changeovers to and from daylight saving time. To make your investments, it is important to respect the schedule of the exchange you choose. Keep in mind that US market activity takes place during the day and exceptionally during some nights. On public holidays, the US market does not open.
The Name of the US Stock Market
The names of the market are numerous: the acronyms NYSE, NASDAQ, CSE or simply Wall Street are used interchangeably. Stock market investing is a lever to grow your capital but it represents at the same time a space of risk. You can therefore lose your entire holdings. It is then advised to train yourself well before starting to trade on the stock exchange. Also make sure to invest in the US stock market only funds that are likely to be lost.
This article has an educational purpose and does not constitute investment advice. Investing involves a risk of loss of capital: never invest in US stocks more than you can afford to lose.