Everything you need to know about US stocks

A few introductory words

US stocks play a key role in the global economy, attracting the attention of investors around the world. Indeed, it has been seen many times over the course of history: an event in the US market impacts much more than the US.

It should be noted that the United States is home to two of the largest stock exchanges: the New York Stock Exchange (NYSE) and NASDAQ. These markets are the epicentres where giants like Apple, Microsoft and Amazon exchange their shares. According to the World Federation of Exchanges for the month of January 2025, NYSE had a market capitalization of approximately $31,755 billion. NASDAQ counted about $30,769 billion (which is quite a lot of money...).

US stocks thus offer (1) a solid basis for building your portfolio, and (2) many practical tools around these stocks to invest effectively. It is therefore a good entry point for beginner investors, and intermediaries.

Understand what US stocks are

The US stocks represent a share of ownership in companies listed on the US stock markets. They are at the heart of global stock investment, as US markets, such as the New York Stock Exchange (NYSE) and NASDAQ, are the largest and most diverse in the world. The NYSE is home to well-established companies, while NASDAQ is focused on innovative technology companies.

Investing in US stocks exposes you to different strategies through several classifications:

• Values of growth: These companies aim for rapid expansion. For example, Amazon and Tesla. Although often volatile, they offer investors the hope of significant gains.

• Defensive values: Prescribed for their stability, these actions often come from sectors resistant to economic fluctuations. Companies such as Procter & Gamble provide regular income even in times of crisis.

• Division shares: These companies redistribute part of their profits in the form of dividends, thus providing you with passive income. Coca-Cola, with a performance of 2.92% (in August 2025), is a good example.

To understand the performance of the US stock market, stock indices are essential. The most important, the famous S&P 500, measures the performance of the largest 500 companies, while the Dow Jones Industrial Average consists of 30 significant companies. You can see that as a barometer of economic health.

Why do US stocks attract investors?

But why are US stocks captivating so many investors worldwide?

First, the American market is the most liquid and deep in the world. With market capitalization of more than $60,000 billion in 2025, this liquidity allows for ease of purchase and sale, minimizing price differences and transaction costs (which is rather convenient, isn't it?).

In addition, Wall Street is home to iconic companies such as Apple and Amazon, covering diverse sectors such as Big Tech, finance and energy. You can see this as a great opportunity to diversify your portfolios by investing in different industries.

The transparency of financial information is also a major asset. US companies comply with strict regulations of the Securities and Exchange Commission (SEC), which ensures the publication of accurate and reliable information, enhancing investor confidence. This also allows you to train AIs quite easily on it, since the data are easily accessible.

With these elements, US stocks remain attractive to a wide range of investors, from beginners to the most experienced.

The main US stock market indices to know

I have already spoken about it briefly above, but know that investing in US stocks requires a good understanding of the stock indices, which serve as barometers for the economy. And as I have already said, these indices mainly help you evaluate the market more optimally. Here are, very briefly, the major indices that it is good to know:

• S&P 500: This index includes 500 of the largest companies listed in the United States, accounting for about 80% of the total market capitalization of the country! Just that. This is often the first index cited when it comes to the US economy. Giants such as Apple, Microsoft and Amazon are among them. It provides (1) an overview and (2) a good indicator to track market trends. In 2020 with the COVID, for example, the S&P 500 experienced significant volatility, but its annual yield history over 10 years remains positive on average, about 11% per year according to various market analyses.

• Dow Jones Industrial Average (DJIA) : This famous index brings together 30 large companies, often considered leaders in their respective sectors, ranging from industry to finance. With names such as Coca-Cola, Boeing and IBM, the DJIA is an excellent reflection of the economic health of iconic American companies. Rather interesting, isn't it? Although the Dow covers only a small selection of companies, it has remained a key indicator since its creation in 1896.

• Nasdaq 100 : Known for its high technological concentration, this index includes 100 of the largest non-financial companies in the Nasdaq Stock Market. With the presence of technological titans such as Alphabet (Google) and Meta Platforms (Facebook), Nasdaq 100 is often used as a measure of the performance of the tech industry.

By using these indices as references, you can easily see how certain stocks behave in the current economic context.

Factors that influence US stocks

Understanding what influences US stocks is essential for any investor. The movements of shares in the United States seem complex, but they are shaped by several key factors (PS: here I would only talk about factors specific to the American market). If you want more information about what can actually affect the price of shares, I propose this nice article).

Fed monetary policy

The Federal Reserve, or Fed, directs stock markets with its monetary policy. Interest rate changes, decided at the FOMC meetings, are a powerful lever. For example, when the Fed raises its interest rates, it can dampen investors' enthusiasm for shares. In 2022, the Fed rose its rates aggressively, contributing to high volatility.

Quarterly Financial Results

The financial results of companies, announced quarterly, are often the backbone of market performance. Net sales and profits are direct indicators of financial health. If, for example, Apple surpasses or misses the Wall Street forecast, it can greatly influence prices. Following these publications helps adjust your investments.

Macroeconomic trends

Indicators such as inflation and unemployment are crucial. Low inflation indicates a healthy economy, encouraging equity investment. By July 2025, US inflation was about 3%, influencing market expectations for future monetary policy.

International short-term developments

International events also have an impact on US stock markets. Geopolitical tensions or commodity fluctuations can trigger chain reactions. For example, negotiations with China can lead to significant volatility in some sectors. So staying informed on the international scene is crucial to anticipating impacts on your investments.

Points to remember for beginner and intermediate investors

In these few paragraphs, it has been clear that investing in US stocks has many advantages that often attract novice and experienced investors. The key takeaway from these few lines:

1. The New York Stock Exchange (NYSE) and NASDAQ are among the most active stock exchanges in the world. According to data from the Securities Industry and Financial Markets Association (SIFMA), the average daily trade volume on US stock exchanges was about 12.2 billion shares in 2024.

2. First advantage, liquidity. Very briefly, it is the ease of transaction for almost all shares, even during turbulence.

3. Second advantage, diversification. US stocks offer (1) the opportunity to invest in various sectors, and (2) a wide choice with more than 4,000 companies listed on NASDAQ. You can see this as a way to spread your risk and create a more resilient portfolio in the face of fluctuations.

4. Understanding major stock market indices such as the S&P 500 is essential. As an economic performance barometer, the S&P 500 has grown by almost 10% annually over the past 10 years.

5. Many factors can influence US stocks. For example, if the federal reserve regularly adjusts interest rates to control inflation, this can clearly have an impact on stock prices.