New York Stock Exchange: NYSE, Nasdaq and Wall Street
The New York Stock Exchange is the center of gravity of global finance: the two largest exchanges on the planet — the NYSE and the Nasdaq — concentrate a major share of global stock market capitalization, and their indices (the Dow Jones, the S&P 500, the Nasdaq) serve as benchmarks for every market, including the Paris Bourse. For a French investor, Wall Street is both a given — the world’s largest companies are listed there — and a specific exercise: off-schedule trading hours, US taxation, currency conversion fees. How does the NYSE work, and how do you invest in it from France? This complete guide covers the whole topic: the history of the exchanges, the indices, NYSE trading hours in French time, the ways to invest, the fees and the risks.
What Is the New York Stock Exchange? NYSE and Nasdaq
« The » New York Stock Exchange is in fact two competing exchanges. The New York Stock Exchange (NYSE), founded in 1792 under the Buttonwood Agreement beneath a buttonwood tree on Wall Street, is the dean of American exchanges: its 2,400 listed companies bring together the historic industrial, financial and consumer stocks, and its trading floor — where traders still move around the trading posts — remains the most widely circulated image of Wall Street. The NYSE has belonged since 2013 to the ICE group (Intercontinental Exchange), itself a listed company.
The Nasdaq, born in 1971, is the world’s first electronic exchange: with no physical trading floor, it first welcomed technology companies — Apple, Microsoft and Intel made their debuts there — before becoming the home of digital giants, biotechnology and growth companies. Today, the two venues compete for the most prestigious listings, and one and the same company can move from one to the other over the course of its history. In everyday language, « Wall Street » covers both New York exchanges and, by extension, the entire American financial community.
The Indices of the New York Stock Exchange
The Dow Jones Industrial Average
The Dow Jones is the oldest and most quoted index: 30 stocks from among the largest American companies — industry, finance, healthcare, technology, consumer goods — selected by the editorial committee of the Wall Street Journal. Its calculation method, a price-weighted average, favors high-priced stocks: it is more of a historical benchmark than an exact measure of the market. Our page dedicated to the Dow Jones details its composition and its specifics, and the chart below displays its live level.
The S&P 500, the True Benchmark of Professionals
The S&P 500 brings together the 500 largest American market capitalizations, weighted by free float. It is the benchmark index for asset managers and most index funds: its breadth makes it the best barometer of the US stock market. The S&P 500 is also the index to which the largest number of ETFs in the world are compared — and the base return required by institutional investors.
The Nasdaq Composite and the Nasdaq 100
The Nasdaq Composite covers the thousands of stocks listed on the Nasdaq, with overwhelming technology dominance; the Nasdaq 100 narrows the focus to the 100 largest non-financial stocks on the exchange. It is the index of technology cycles: its swings, on the way up as on the way down, regularly exceed those of the S&P 500. Our page devoted to the Nasdaq compares the two indices and their uses for investors.
NYSE Trading Hours in French Time
The NYSE and the Nasdaq share the same hours: the regular session runs Monday to Friday from 9:30 a.m. to 4:00 p.m., Eastern Time (ET). The gap with Paris is 6 hours all year round: the New York open therefore falls at 3:30 p.m. French time, and the close at 10:00 p.m. Around the session, the pre-market (4:00 a.m. – 9:30 a.m. ET) and after-hours (4:00 p.m. – 8:00 p.m. ET) make it possible to trade outside official hours, with thinner liquidity and wider bid-ask spreads. US public holidays — Thanksgiving, Independence Day, Memorial Day… — close both exchanges, sometimes for full sessions (an early close at 1:00 p.m. on the eve of certain holidays). For a French investor, the second half of the New York session therefore unfolds in the evening: a comfort that neither Tokyo nor Sydney offers.
How to Invest in the NYSE from France
ETFs and Euro-Denominated Funds
The simplest route to exposure to Wall Street: S&P 500 and Nasdaq 100 ETFs listed in Europe, in euros, at every French broker. Most ETFs domiciled in Europe are PEA-eligible (US underlying assets but a European fund), which combines US exposure with advantageous French taxation. Low management fees, instant diversification across hundreds of stocks: this is the option favored by the majority of savers.
Buying US Stocks Directly
Buying Apple, Microsoft or Nvidia directly requires a standard securities account — US stocks are not eligible for the PEA. Virtually all French online brokers give access to the NYSE and the Nasdaq, often via Deutsche Börse’s US market or directly, with fees in the range of a few euros per order. Three points of vigilance: the euro-dollar conversion (currency fees on every round trip), fractional shares (most brokers allow you to buy fractions of a share) and the W-8BEN form, to be completed with your broker to benefit from the reduced withholding tax rate on US dividends.
Leveraged Products: CFDs, Options, Trackers
Wall Street is also the playground of derivative products: options (the world’s largest market), CFDs on indices and stocks, certificates and turbos issued by European banks. These instruments serve short-term strategies — hedging, speculation, income generation — and assume a real command of the mechanisms: leverage amplifies losses just as much as gains, and the majority of retail CFD accounts lose money. Our pages on the US stock market explore these mechanisms in depth.
Tax and Fees for a French Resident
A French resident’s New York investment is structured in three tiers. American withholding tax on dividends: 15% with a W-8BEN form on file (versus 30% without), creditable against French tax thanks to the tax treaty. French taxation: a flat tax (PFU) of 30% on dividends and capital gains in a securities account (or the progressive scale with tax credits), with exemption after 5 years in a PEA for eligible ETFs. And finally, currency fees: every direct purchase in dollars consumes a conversion margin — from a few tenths of a point to more than a full percentage point depending on the broker — which nibbles away at performance on frequent round trips. Over the long term, these three tiers can be managed: W-8BEN completed, a tax wrapper suited to the investment horizon, and orders grouped together to limit currency conversion.
The Major Companies Listed in New York
The world’s largest market capitalizations are concentrated on two exchanges. On the Nasdaq, the « Magnificent Seven » — Apple, Microsoft, Nvidia, Alphabet, Amazon, Meta and Tesla — dominate the indices and account for a quarter to a third of the S&P 500 depending on the period. The NYSE lists the historic industrial and financial stocks: Berkshire Hathaway, JPMorgan, Visa, Walmart, ExxonMobil, Coca-Cola and Disney. This duality sums up the New York Stock Exchange: a very high-growth technology market (the Nasdaq) and a market of established stocks and dividends (the NYSE), which the broad indices combine. For a European investor, the allocation between the two often goes through ETFs rather than the individual selection of US stocks.
Risks of the New York Stock Exchange
The risks of the US market are first of all those of any concentration: the Nasdaq’s technology dominance means that a downturn in the sector — interest rates, regulation, a valuation bubble — drags the indices down as a whole. Next comes currency risk on the dollar-euro pair, mechanically present on every unhedged position, then valuation risk: American multiples historically trade above Europe’s, which amplifies corrections when growth disappoints. Finally, American systemic risk — the Fed’s monetary policy, the debt ceiling, electoral uncertainty — regularly sweeps through Wall Street with acute volatility. None of these risks has prevented the US market from being the best performer of the last century: they simply impose a thoughtful allocation and a long horizon.
FAQ About the New York Stock Exchange
What is the name of the New York stock exchange?
There are two: the New York Stock Exchange (NYSE), founded in 1792, and the Nasdaq, founded in 1971. « Wall Street » is the common name for the whole New York financial marketplace, taken from the street where the NYSE was born.
When does the New York stock exchange open in French time?
The regular session runs from 9:30 a.m. to 4:00 p.m. Eastern Time, that is 3:30 p.m. to 10:00 p.m. in Paris, all year round. Pre-market and after-hours trading extend the session, with thinner liquidity.
Which index represents the New York stock exchange?
The Dow Jones (30 stocks) is the most quoted historical index, the S&P 500 (500 stocks) is the professionals’ benchmark, and the Nasdaq 100 concentrates technology stocks. Each tells a different side of the American market.
Can you invest in Wall Street with a PEA?
Not in individual stocks, but yes via the S&P 500 and Nasdaq 100 ETFs domiciled in Europe and eligible for the plan. It is the combination most used by French savers: US exposure, PEA taxation.
What is the W-8BEN form?
It is the declaration that certifies your status as a non-US resident with your broker. Without it, withholding tax on your US dividends rises from 15% to 30%. It takes only a few minutes to complete with most brokers.
Why does the New York stock exchange influence global markets?
Through its size (the largest market capitalization in the world), its liquidity and the weight of the dollar: global flows concentrate there, and its shifts in mood — rates, earnings, the economic outlook — spread to other exchanges, the Paris Bourse included, within seconds.
This article is for educational purposes and does not constitute investment advice. Investing in the stock market involves a risk of loss of capital.
Forex, indices, matières premières et cryptos en CFD
Ouvrir un compte chez Vantage →