Why are stock market indices important?

Posted in Indices CFDs
5 minute read
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Playing an important role in determining market sentiment, analyzing the performance of major stock indexes like the FTSE, CAC and STOXX 600 can prove a useful part of any multi-faceted trading strategy. Read more.

Stock market indices: Why are they important?

Point 1: Economic development

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S&P 500 1M price action, TradingView (April 2, 2020)

Point 2: Industry growth and company value

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Source: TradingView (April 14, 2020)

Point 3: As a measure of investment success

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Source: TradingView (November 2021)

Why are stock indices important?