The S&P 500 was created in 1957 as the first U.S. market-cap-weighted stock market index. Today, it is widely regarded as the best single gauge of large-cap U.S. equities. As the world evolves, S&P Dow Jones Indices continues to expand its financial indices to include innovative ways to use data and measure company performance.
Recognizing the unique and growing financial conversation on Twitter, S&P Dow Jones Indices looked to leverage that data to create an innovative index. Using Twitter data to measure the collective opinion of users on Twitter, rather than the opinion of a single expert, S&P Dow Jones Indices put a test into practice: companies that have higher investor sentiment will perform better over time. With an eye on connecting with new and engaged market participants, S&P Dow Jones Indices saw Twitter – and its conversational audience – as a useful data input for their purposes.