This glossary explains 31 terms you will meet in pre-market and stock market coverage, from “after-hours trading” to “volume”, in one or two plain-English sentences each. Terms link to our longer guides where there is more to know.
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Terms A–Z
After-hours trading
Trading in U.S. stocks after the 4:00 p.m. ET close, usually until 8:00 p.m. ET. Volume is thin and spreads are wider than during the regular session. Learn more.
Basis point (bp)
One hundredth of a percentage point (0.01%). A yield rising from 4.50% to 4.75% has risen 25 basis points.
Bid-ask spread
The gap between the highest price a buyer will pay (bid) and the lowest a seller will accept (ask). Spreads are usually wider in the pre-market.
Circuit breaker
A market-wide trading halt triggered when the S&P 500 falls 7%, 13% or 20% from the prior close, designed to slow panic selling.
Consensus estimate
The average forecast of analysts or economists for a company’s earnings or an economic release. Markets react to the gap between the actual figure and the consensus. Learn more.
CPI (Consumer Price Index)
The Bureau of Labor Statistics’ monthly measure of consumer inflation, released at 8:30 a.m. ET, usually mid-month. Learn more.
Dot plot
Part of the Fed’s Summary of Economic Projections showing where each official expects the federal funds rate to be. Published four times a year. Learn more.
E-mini S&P 500 (ES)
CME’s main stock index futures contract, worth $50 times the S&P 500, trading nearly 24 hours a day on weekdays. Learn more.
Earnings per share (EPS)
A company’s profit divided by its shares outstanding. Results are judged against the consensus EPS estimate.
Extended-hours trading
The pre-market and after-hours sessions outside the 9:30 a.m. to 4:00 p.m. ET regular session. Learn more.
Fair value (futures)
The theoretical futures price after adjusting the index for interest rates and expected dividends. The gap between futures and fair value shows the expected open. Learn more.
Federal funds rate
The interest rate target set by the Federal Reserve’s FOMC. It drives borrowing costs across the economy. Learn more.
FOMC
The Federal Open Market Committee, the Fed body that sets interest rates at eight scheduled meetings a year. Learn more.
Gap up / gap down
When a stock or index opens well above (gap up) or below (gap down) the previous close, usually after overnight news or earnings.
Guidance
A company’s own forecast for future revenue or earnings. A guidance change often moves a stock more than the quarter’s results.
High-yield spread
The extra yield investors demand to hold junk bonds over Treasuries. A widening spread signals rising credit stress. Learn more.
Initial jobless claims
Weekly count of new unemployment insurance filings, released every Thursday at 8:30 a.m. ET by the Department of Labor. Learn more.
Limit order
An order to buy or sell only at a set price or better. Most brokers accept only limit orders in extended hours. Learn more.
Market breadth
How many stocks are rising versus falling. Narrow breadth means a few large stocks are driving an index.
Nasdaq-100
An index of the 100 largest non-financial companies listed on Nasdaq, heavily weighted to technology. Its futures trade as NQ. Learn more.
Nonfarm payrolls
The number of jobs added or lost outside agriculture, the headline of the monthly jobs report released at 8:30 a.m. ET. Learn more.
PCE price index
The Personal Consumption Expenditures inflation measure from the BEA, the Fed’s preferred inflation gauge. Learn more.
Pre-market trading
Trading before the 9:30 a.m. ET open, from 4:00 a.m. ET on Nasdaq and NYSE Arca. It is where overnight news is first priced. Learn more.
Risk-on / risk-off
Shorthand for whether investors are seeking risk (buying stocks, selling bonds) or avoiding it. Our Sentiment Index measures this daily. Learn more.
S&P 500
An index of 500 large U.S. companies weighted by market value, the main benchmark for U.S. stocks.
Sector rotation
Money moving from one group of stocks to another, for example from technology into energy or utilities.
Short squeeze
A sharp rise forced by short sellers buying back shares to cut losses, often after unexpected good news.
Summary of Economic Projections (SEP)
The Fed’s quarterly forecasts for growth, unemployment, inflation and rates, released at the March, June, September and December meetings. Learn more.
Treasury yield (10-year)
The return on 10-year U.S. government bonds. Rising yields raise borrowing costs and often weigh on stock valuations.
VIX
The Cboe Volatility Index, a measure of expected S&P 500 volatility over the next 30 days, often called Wall Street’s fear gauge. Learn more.
Volume
The number of shares traded. Low pre-market volume means prices can move sharply on small orders. Learn more.
More guides
See all our guides, including pre-market trading hours, how stock futures work, the economic calendar, Fed meeting dates and market holidays.
Last reviewed: November 8, 2026, by the PreMarket Daily editorial desk. General information, not investment advice.