S&P Dow Jones Indices and Kalshi are joining forces to build the next generation of financial markets.
The Dow launched in 1896. The S&P 500 in 1957. The idea was simple: bring individual stocks together into a single benchmark, giving people a clearer view of the broader market.
Over time, products built around those benchmarks transformed investing. Index funds, ETFs, futures, and options gave investors ways to gain diversified market exposure and hedge broad market swings.
These indices became foundations of global finance. More than $20 trillion is indexed or benchmarked to the S&P 500 alone.
Today, this structure extends beyond stocks to bonds, commodities, currencies, and more.
The next step is to bring that structure to the events that shape everyone’s lives.
Through this partnership, S&P Dow Jones Indices and Kalshi will work together to create indices composed of Kalshi event contracts.
Think about what that opens up.
An index of political power. An index of supply chain risk. An index tracking AI’s impact on employment. An index of sports outcomes that affect broadcasters, advertisers, cities, and small businesses. An index of weather risks that shape harvests, energy demand, and business revenues.
Each would bundle event contracts into a single indicator, helping people understand how related risks are evolving.
Over time, products built around these indices could offer diversified exposure to those events and new ways to hedge their impact.
The events that shape our lives could become as easy to track and gain exposure to as the S&P 500.
What type of people are successful on Kalshi?
We commissioned an independent third party to study our top traders. Here’s what they found:
Top traders are not limited to privileged or financial backgrounds.
-79% went to public school
-They are over 2x as likely to have worked retail or service jobs than on Wall Street
-65% are self-taught
The majority of top traders: :
-Actively seek out primary documents for research
-Actively seek out conflicting sources to challenge their beliefs
-Outperform the public on numeracy tests
The findings echo the foundational work of Philip Tetlock: the best forecasters are not subject matter experts. They tend to be otherwise-ordinary people who are intellectually humble, willing to do research, and think probabilistically instead of emotionally.
Is it time to call it the Silicon Spread yet?
Kalshi intends to launch additional compute and power markets so people can trade the physical infrastructure behind AI. From a market perspective, compute and power are the two most important inputs to the AI revolution happening in the marketplace.
In other commodity markets we have already seen similar relationships exist: Gas & power trade through the spark spread, for instance. We are already witnessing AI infrastructure develop a similar relationship: power in, compute out, aka the Silicon Spread.
Kalshi is taking a methodical and comprehensive approach to building out the markets for compute and power:
(1) Price Discovery & hedging through Prediction Markets
(2) Continuous exposure management through Perpetual Futures
(3) Long Dated Exposure hedging through Dated Futures
AI infrastructure runs around the clock, and the risks don’t pause either. Weather, outages and grid constraints can move power markets significantly over a weekend. Kalshi, with our ability to both trade and clear 24/7 will provide the marketplace for round-the-clock trading and risl management of power and contract markets.
For more details, please read out insights in this research paper. kalshi.com/research/kalsh…
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