I just realized an interesting fact about the U.S. stock market – it accounts for up to 75% of the global market capitalization. That means if you want to understand how the financial world is unfolding, the U.S. market is where you must follow.

There are two major exchanges that operate everything: the New York Stock Exchange (NYSE) and NASDAQ. According to estimates from Intercontinental Exchange, the total market value of U.S. stocks is about $46.5 trillion, with NYSE alone holding over $30 trillion. This number speaks volumes about its scale.

Because there are so many listed companies, they create indices to help investors track the market. The four main indices everyone knows are: S&P 500 (measuring the 500 largest companies), Dow Jones (30 top companies), Nasdaq Composite, and Nasdaq 100. Each reflects a different perspective of the market.

Looking at performance over the past five years, the S&P 500 increased by 85.78%, Dow Jones by 54.13%, and Nasdaq 100 by 147.43%. Some individual stocks are even more impressive: Microsoft up 256%, Apple up 261%, NVIDIA nearly 1900%. That’s why people pay close attention to the U.S. stock market.

One thing to note is that for Vietnamese investors, directly buying U.S. stocks isn’t feasible due to legal restrictions. But there’s an alternative – trading on margin via Contracts for Difference (CFD). This method allows you to profit from price differences without actually owning the securities, and you can profit from both rising and falling markets.

Trading hours on the U.S. stock exchanges are from Monday to Friday, roughly 8:30 PM to 2:00 AM Vietnam time (summer) or 9:30 PM to 3:00 AM (winter). Pre-market trading starts at 7:00 PM, and after-hours trading ends at 3:00 AM.

Looking at notable stocks in 2024, some have skyrocketed. For example, Shockwave Medical surged 828.8%, Viking Therapeutics by 795%, Lifeway Foods by 787%. Despite difficulties in 2022-2023 due to energy crises, Russia-Ukraine war, and global inflation, these companies have shown strong recovery.

The S&P 500 is considered the most reliable index because it includes leading companies from all sectors, representing over 70% of the U.S. stock market value. However, a weakness is that 50% of its value is driven by just 45 large companies, so it tends to reflect the fluctuations of a relatively limited group.

Nasdaq Composite differs – it includes small and speculative companies, thus better reflecting the tech sector’s health and investor sentiment towards high-risk stocks. Nasdaq 100 focuses on Technology, Telecommunications, Biotech, and Media.

In the first half of 2024, all four indices showed signs of strong recovery. Dow Jones increased by 5.59%, S&P 500 by nearly 10%, Nasdaq Composite by 2.28%, and Nasdaq 100 by 24.17% over six months. People are expecting the Fed to cut interest rates, with Goldman Sachs predicting three cuts in 2024 and four in 2025.

But it’s important to note that geopolitical events can still impact the markets. The Russia-Ukraine war and Middle East conflicts could drive investors toward safer assets like gold or Bitcoin, slowing the rally of the U.S. stock market. David Bahnsen from Bahnsen Group warns that if Middle East tensions escalate, markets could drop 7-10%.

Overall, the U.S. stock market remains in a relatively positive position. Investment opportunities are still present, but close monitoring of macroeconomic factors and geopolitical developments is essential. That’s why following the U.S. stock market is crucial for any investor.