About 5,500 companies are listed across U.S. stock exchanges as of the first quarter of 2026, according to the Security Industry and Financial Markets Association. Of those companies, 500 of the largest U.S.-based businesses are included in the S&P 500 (SNPINDEX: ^GSPC), an index that is generally synonymous with the domestic stock market.
Read on to learn how the S&P 500 performed over the last 20 years and what Wall Street expects from the benchmark index over the next year.
Will AI create the world’s first trillionaire? Our team just released a report on the one little-known company, called an “Indispensable Monopoly” providing the critical technology Nvidia and Intel both need. Continue »
The S&P 500 returned 9.3% annually over the last 20 years (excluding dividends)
The S&P 500 was created in March 1957. The index is generally viewed as the best gauge for the overall U.S. stock market because it measures the performance of 500 large companies that account for more than 80% of domestic equities by market value.
Inclusion is ultimately at the discretion of a selection committee, but companies cannot be considered unless they meet certain eligibility criteria. They include profitability over the last four quarters according to generally accepted accounting principles (GAAP), sufficiently liquid stocks, and a minimum market capitalization of $22.7 billion.
The index is updated during quarterly rebalancing events on the third Friday of March, June, September, and December. Coherent, EchoStar, Lumentum, and Vertiv joined the index in March. However, companies can be added at any time. Veeva Systems joined the S&P 500 in April to replace Coterra Energy after it was acquired by Devon Energy.
The S&P 500 is most heavily weighted toward technology stocks. The five largest positions in the index are listed by weight below:
-
Nvidia: 8%
-
Apple: 7.1%
-
Alphabet: 6.2%
-
Microsoft: 4.9%
-
Amazon: 4.1%
Excluding dividends, the S&P 500 advanced 492% (9.3% annually) over the last 20 years. Including dividends, the index achieved a total return of 768% (11.4% annually) during the same period.
Wall Street analysts expect the S&P 500 to return 14.7% over the next year
Wall Street analysts expect S&P 500 companies’ earnings to increase 25% in 2026, up from 14% in 2025, per LSEG. Factors contributing to faster earnings growth include robust spending on artificial intelligence infrastructure and corporate tax breaks included in President Donald Trump’s “big, beautiful bill.”
