Relation of S&P 500 and US Fed Interest

Q

What Is the Relationship Between S&P 500 Index and US Fed Discount Interest Rates?

✍: FYIcenter.com

A

The Relationship Between S&P 500 Index and US Fed Discount Interest Rates can be summarized as:

  • Interest rates tend to negatively affect the S&P 500 Index.
  • Central banks raise interest rates to cool the economy which decreases the S&P 500 Index.
  • Central banks lower interest rates to stimulate the economy which increases the S&P 500 Index.
Compare:
   S&P 500
   SNP: ^GSPC
   2026-01-16: 6940.00976563 USD
with:
   US Fed Discount Rate
   US: DISC
   2026-01-16: 3.75000000 USD

                S&P 500        US Fed Discount Rat
               ^GSPC  Growth%        DISC  Growth%
           ---------- -------   ---------- -------
2026-01-16   6,940.01  100.00         3.75  100.00
2026-01-15   6,944.47  100.06         3.75  100.00
2026-01-14   6,926.60   99.81         3.75  100.00
2026-01-13   6,963.74  100.34         3.75  100.00
2026-01-12   6,977.27  100.54         3.75  100.00
2026-01-09   6,966.28  100.38         3.75  100.00
2026-01-08   6,921.46   99.73         3.75  100.00
2026-01-07   6,920.93   99.73         3.75  100.00
2026-01-06   6,944.82  100.07         3.75  100.00
2026-01-05   6,902.05   99.45         3.75  100.00
2026-01-02   6,858.47   98.83         3.75  100.00
2025-12-31   6,845.50   98.64         3.75  100.00
2025-12-30   6,896.24   99.37         3.75  100.00
2025-12-29   6,905.74   99.51         3.75  100.00
2025-12-26   6,929.94   99.85         3.75  100.00
2025-12-24   6,932.05   99.89         3.75  100.00
2025-12-23   6,909.79   99.56         3.75  100.00
2025-12-22   6,878.49   99.11         3.75  100.00
2025-12-19   6,834.50   98.48         3.75  100.00
2025-12-16   6,800.26   97.99         3.75  100.00
2025-11-16   6,734.11   97.03         4.00  106.67
2025-10-16   6,629.07   95.52         4.25  113.33
2025-09-16   6,606.76   95.20         4.50  120.00
2025-08-16   6,449.80   92.94         4.50  120.00
2025-07-16   6,263.70   90.25         4.50  120.00
2025-06-16   6,033.11   86.93         4.50  120.00
2025-05-16   5,958.38   85.86         4.50  120.00
2025-04-16   5,275.70   76.02         4.50  120.00
2025-03-16   5,638.94   81.25         4.50  120.00
2025-02-16   6,114.63   88.11         4.50  120.00
2025-01-16   5,937.34   85.55         4.50  120.00
2024-01-16   4,765.98   68.67         5.50  146.67
2023-01-16   3,999.09   57.62         4.50  120.00
2022-01-16   4,662.85   67.19         0.25    6.67
2021-01-16   3,768.25   54.30         0.25    6.67
2020-01-16   3,316.81   47.79         2.25   60.00
2019-01-16   2,616.10   37.70         3.00   80.00
2018-01-16   2,776.42   40.01         2.00   53.33
2017-01-16   2,274.64   32.78         1.25   33.33
2016-01-16   1,880.33   27.09         1.00   26.67
2015-01-16   2,104.50   30.32         0.75   20.00
2014-01-16   1,859.45   26.79         0.75   20.00
2013-01-16   1,514.68   21.83         0.75   20.00
2012-01-16   1,365.68   19.68         0.75   20.00
2011-01-16   1,327.22   19.12         0.75   20.00
2010-01-16   1,104.49   15.91         0.50   13.33
2009-01-16     735.09   10.59         0.50   13.33
2008-01-16   1,330.63   19.17         4.75  126.67
2007-01-16   1,406.82   20.27         6.25  166.67
2006-01-16   1,280.66   18.45         5.25  140.00
2005-01-16   1,203.60   17.34         3.25   86.67
2004-01-16   1,144.94   16.50         2.00   53.33
2003-01-16     841.15   12.12         2.25   60.00
2002-01-16   1,106.73   15.95                     
2001-01-16   1,239.94   17.87                     
2000-01-16   1,366.42   19.69                     
1999-01-16   1,238.33   17.84                     
1998-01-16   1,049.34   15.12                     
1997-01-16     790.82   11.40                     
1996-01-16     640.43    9.23                     
1995-01-16     487.39    7.02                     
1994-01-16     467.14    6.73                     
1993-01-16     443.38    6.39                     
1992-01-16     412.70    5.95                     
1991-01-16     367.07    5.29                     
1990-01-16     331.89    4.78                     
1989-01-16     288.86    4.16                     
1988-01-16     267.82    3.86                     
1987-01-16     284.20    4.10                     
1986-01-16     226.92    3.27                     
1985-01-16     181.18    2.61                     
1984-12-01     181.18    2.61                     

As you can see, when US inflation rate went up above 8% in 2022, US Fed raised the Discount Rate from 0.25% to 5.50% in about 1 year. This helped to bring the inflation rate down to 3% in 2023.

 

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