What the S&P 500 is and how it has performed since 1957

The S&P 500 closed at 7,757.17 on October 21, 2026, up 13.3% for the year. Its record close is 7,818.93, set on October 6, 2026. Through the October 21, 2026, close, it had set 28 record closes in 2026.

The S&P 500 tracks 500 of the largest public companies in the US. It took its current form on March 4, 1957, when it grew from 90 stocks to 500.

It isn't just a list of the 500 biggest companies. A committee picks the members, and a company has to meet a set of rules to get in.

The index covers 11 sectors, from tech and financials to utilities and real estate.

Membership changes over time. When a company shrinks, merges or gets bought, the committee replaces it with another that meets the rules.

The index holds slightly more than 500 stocks because some companies, such as Alphabet, have more than one class of shares.

Bigger companies count for more in the S&P 500. Each stock is weighted by the market value of its shares that are available to trade.

That means a few giants carry a large share of the index. As of September 30, 2026, the 10 largest holdings made up about 39% of the index. Those 10 lines covered nine companies, because Alphabet appears twice.

That concentration runs through our coverage of the top 10 S&P 500 stocks, the spread among the Magnificent 7 and the median S&P 500 stock, which can tell a different story than the index.

There's also a version of the index that gives every company the same weight. It's covered in equal weight vs the S&P 500.

The S&P 500 finished 2025 at 6,845.50. Through October 21, 2026, it was up 13.3% for the year.

It hasn't been a straight line. The index hit a high of 6,978.60 on January 27, 2026, then fell 9.1% to 6,343.72 by March 30. That was the deepest drop of 2026 through October 21. The index then set a string of new records, the latest on October 6, 2026.

The bull market that began at the low of 3,577.03 on October 12, 2022, had lifted the index 116.9% through the October 21, 2026, close.

Here is the S&P 500's price return in each of the last seven full years.

Those are price returns, which leave out dividends. Counting dividends, SPY was up 14.3% in 2026 through October 21, 2026, compared with 13.4% on price alone.

Under the surface, see S&P 500 sector performance in 2026 and this bull market at age four.

From 1950 through 2025, the S&P 500 rose in 56 of 76 calendar years. Its average yearly price gain was 9.6%, and the median year was up 12.4%. Both figures leave out dividends.

The best year in that span was 1954, with a 45.0% gain. The worst was 2008, with a 38.5% loss. The most recent down year was 2022, when the index fell 19.4%.

From March 4, 1957, through October 21, 2026, the index compounded at 7.7% a year on price alone.

On October 19, 1987, the S&P 500 fell 20.5%, its largest one-day percentage drop in daily data going back to 1928. See the S&P 500 after Black Monday.

From 1950 through 2025, the index gained an average 0.9% in October and rose in 45 of 76 Octobers. See S&P 500 returns in October.

In the 19 midterm years from 1950 through 2022, the fourth quarter gained an average 6.6% and rose 16 times. See fourth-quarter returns in midterm years and S&P 500 after every midterm.

Past returns don't predict future ones.

You can't buy the index itself. Investors buy funds that track it.

The SPDR S&P 500 ETF Trust (SPY) launched on January 22, 1993. As of September 30, 2026, its gross expense ratio was 0.0945% a year. Many other funds track the S&P 500, and their fees differ.

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What is the S&P 500?
The S&P 500 is an index of 500 large US public companies, chosen by a committee and weighted by market value. It took its current form on March 4, 1957.

How many stocks are in the S&P 500?
500 companies. It holds slightly more than 500 stocks because some companies, such as Alphabet, have more than one share class.

How much is the S&P 500 up in 2026?
It was up 13.3% in 2026 through the October 21, 2026, close at 7,757.17, not counting dividends.

What is the S&P 500's record high?
As of the October 21, 2026, close, its record close was 7,818.93, set on October 6, 2026.

What is the average annual return of the S&P 500?
From 1950 through 2025, its average calendar-year price gain was 9.6%, and it rose in 56 of 76 years. Dividends add to that.

What are the biggest stocks in the S&P 500?
As of September 30, 2026, the largest were Nvidia, Apple, Microsoft, Amazon, Alphabet, Broadcom, Meta, Micron and Tesla. Those 10 holdings, counting Alphabet's two share classes, made up about 39% of the index.

What is the difference between the S&P 500 and SPY?
The S&P 500 is an index. SPY is a fund that holds the index's stocks and trades like a single stock. As of September 30, 2026, its yearly fee was 0.0945%.

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