Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

History of US stock markets

The history of US stock markets is a history of Wall Street: the eight-block area of New York that grew to become the most famous financial district in the world, and is now synonymous with the entire US financial sector.

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Markets	Bid	Offer	Change
Wall Street	liveprices.javascriptrequired			-	-
US Tech 100				-	-	-
US 500				-	-	-
US Russell 2000				-	-	-

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A brief history of Wall Street

When did Wall Street start?

The first traders and speculators on Wall Street gathered under a buttonwood tree to buy and sell securities. In 1792 they formalised under the Buttonwood Agreement, which introduced rules to make trading more structured.

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What was the first US stock exchange?

The New York Stock and Exchange Board was formed in 1817, as a continuation of the Buttonwood Agreement. The board began renting dedicated spaces for securities trading, moving locations several times in its first few decades.

In 1865, it was moved to its permanent home at 11 Wall Street, where it still stands today.

The Wall Street Journal and the Dow Jones

A daily stock report initially called the Customers’ Afternoon Letter was renamed in 1889, becoming The Wall Street Journal. A few years later, in 1896, The Wall Street Journal began publishing the average prices of several key stocks on the NYSE, as compiled by Charles H. Dow – the original Dow Jones Industrial Average.

The Dow Jones may have started out focusing solely on stocks listed on the NYSE, but today none of the main stock indices in the US do:

The Dow Jones features companies from both the NYSE and the NASDAQ
The S&P 500 and Russell 2000 also feature companies listed on both exchanges
The NASDAQ composite and NASDAQ 100 only feature companies listed on the NASDAQ

Black Tuesday, and other crashes

In 1929, the Wall Street crash caused stock prices to plummet, creating chaos on Wall Street and ushering in the Great Depression. On 29 October, known as Black Tuesday, the NYSE saw quadruple the normal trading volume as furious selling took hold and the Dow Jones dropped over 12%.

While the crash remains notorious for its long-lasting effect, it is just one of many events that have rocked Wall Street over the years. Others include:

Black Monday, 1987: the Dow Jones index fell 22.61%, or 508 points, in a single day – still the largest percentage drop in its history
Friday 13 mini crash, 1997: after a failed buyout of UAL Corporation, owner of United Airlines, US indices plunged
Dotcom bubble bursting, 2000: after peaking on 10 March, 2000, the NASDAQ fell 78% over 30 months as overhyped internet companies began to falter
2008 crisis: the collapse of Lehman Brothers on 15 September 2008 marked the start of a lasting crisis that played havoc across US indices

Wall Street today

The actual street’s heyday as a financial hub has long passed, even though it is still home to the NYSE and several other financial institutions. Digital trading has lessened the need for a central location to buy and sell securities, and as a result many of the major New York banks have moved further afield.

But Wall Street has grown beyond its geographical boundaries, and today represents an economy that is larger than ever. And with such a long and illustrious history behind it, few would predict that Wall Street’s influence on the global stage will diminish any time soon.

Why is Wall Street so important?

These days, when traders and analysts talk about Wall Street, they are referring to the US financial sector – the banks, exchanges and investment firms in every American city combined.

Today, the US is the world’s biggest economy with a 2016 GDP of $18,569 billion: around 25% of the world’s total. It has also got the world’s most valuable listed companies, estimated to be $27,352 billion. And it is Wall Street that has been the driving force behind America’s rise to becoming the world’s leading financial hub.

Wall Street stock exchanges

The most famous inhabitant of Wall Street is undoubtedly the New York Stock Exchange (NYSE). Nicknamed ‘The Big Board’ and located at 11 Wall Street, it is by some distance the largest stock exchange in the world by market cap.

Who owns the NYSE?

The NYSE is owned and operated by a company called Intercontinental Exchange, and has been since 2013. Intercontinental Exchange is itself a listed company, meaning its shares can be bought and sold on the NYSE.

The NASDAQ

While not located on the street itself, the NASDAQ is just around the corner at One Liberty Plaza on Broadway. It was launched as the world’s first electronic stock exchange in 1971 and is now the second biggest exchange in the world.

Wall Street and the Dow Jones

At IG, we use the term Wall Street to refer to our market based on the flagship US index, the Dow Jones Industrial Average. The Dow is comprised of 30 of the biggest listed companies in the US, and is used by traders and analysts as an indicator of the performance of US stock markets as a whole.

Many traders use the Dow as a benchmark to judge the performance of other investments – assessing whether an investment would have been worthwhile by comparing its price history to the price of the Dow over the same timeframe.

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Help and support

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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. 

Professional clients trading spread bets and CFDs can lose more than they deposit.

Options and futures are complex instruments which come with a high risk of losing money rapidly due to leverage. They’re not suitable for most investors. Before you invest, you should consider whether you understand how options and futures work, the risks of trading these instruments and whether you can afford to lose more than your original investment.

Trading stocks and shares ‘on margin’ within a US options and futures account – meaning that you only finance part of the cost of acquiring a position in a security – carries additional risks over buying securities on a fully funded basis and may result in losses exceeding your original investment. Trading on margin will also result in additional costs to you as the investor and any securities purchased using margin may be held as collateral by the lender, restricting both your rights as shareholder, and your ability to use the securities until the margin trade is closed. You should familiarise yourself with these risks before trading on margin.

The value of shares, ETFs and other ETPs bought through a share dealing account, a US options and futures account, a stocks and shares ISA or a SIPP can fall as well as rise, which could mean getting back less than you originally put in. Past performance is no guarantee of future results. Some ETPs carry additional risks depending on how they’re structured, investors should ensure they familiarise themselves with the differences before investing.

Share dealing and IG Smart Portfolio accounts provided by IG Trading and Investments Ltd, CFD accounts and US options and futures accounts are provided by IG Markets Ltd, spread betting provided by IG Index Ltd.   

IG is a trading name of IG Trading and Investments Ltd (a company registered in England and Wales under number 11628764), IG Markets Ltd (a company registered in England and Wales under number 04008957) and IG Index Ltd (a company registered in England and Wales under number 01190902). Registered address at Cannon Bridge House, 25 Dowgate Hill, London EC4R 2YA. IG Markets Ltd (Register number 195355), IG Trading and Investments Ltd (Register Number 944492) and IG Index Ltd (Register number 114059) are authorised and regulated by the Financial Conduct Authority.   

The information on this site isn’t directed at residents of the United States, Belgium or any particular country outside the UK and isn’t intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.