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

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
   2026-03-13: 6632.18994141 USD
with:
   US Fed Discount Rate
   US: DISC
   2026-03-13: 3.75000000 USD

                S&P 500        US Fed Discount Rat
               ^GSPC  Growth%        DISC  Growth%
           ---------- -------   ---------- -------
2026-03-13   6,632.19  100.00         3.75  100.00
2026-03-12   6,672.62  100.61         3.75  100.00
2026-03-11   6,775.80  102.17         3.75  100.00
2026-03-10   6,781.48  102.25         3.75  100.00
2026-03-09   6,795.99  102.47         3.75  100.00
2026-03-06   6,740.02  101.63         3.75  100.00
2026-03-05   6,830.71  102.99         3.75  100.00
2026-03-04   6,869.50  103.58         3.75  100.00
2026-03-03   6,816.63  102.78         3.75  100.00
2026-03-02   6,881.62  103.76         3.75  100.00
2026-02-27   6,878.88  103.72         3.75  100.00
2026-02-26   6,908.86  104.17         3.75  100.00
2026-02-25   6,946.13  104.73         3.75  100.00
2026-02-24   6,890.07  103.89         3.75  100.00
2026-02-23   6,837.75  103.10         3.75  100.00
2026-02-20   6,909.51  104.18         3.75  100.00
2026-02-19   6,861.89  103.46         3.75  100.00
2026-02-18   6,881.31  103.76         3.75  100.00
2026-02-17   6,843.22  103.18         3.75  100.00
2026-02-13   6,836.17  103.08         3.75  100.00
2026-01-13   6,963.74  105.00         3.75  100.00
2025-12-13   6,827.41  102.94         3.75  100.00
2025-11-13   6,737.49  101.59         4.00  106.67
2025-10-13   6,654.72  100.34         4.25  113.33
2025-09-13   6,584.29   99.28         4.50  120.00
2025-08-13   6,466.58   97.50         4.50  120.00
2025-07-13   6,259.75   94.38         4.50  120.00
2025-06-13   5,976.97   90.12         4.50  120.00
2025-05-13   5,886.55   88.76         4.50  120.00
2025-04-13   5,363.36   80.87         4.50  120.00
2025-03-13   5,521.52   83.25         4.50  120.00
2024-03-13   5,165.31   77.88         5.50  146.67
2023-03-13   3,855.76   58.14         4.75  126.67
2022-03-13   4,204.31   63.39         0.25    6.67
2021-03-13   3,943.34   59.46         0.25    6.67
2020-03-13   2,711.02   40.88         1.75   46.67
2019-03-13   2,810.92   42.38         3.00   80.00
2018-03-13   2,765.31   41.70         2.00   53.33
2017-03-13   2,373.47   35.79         1.25   33.33
2016-03-13   2,022.19   30.49         1.00   26.67
2015-03-13   2,053.40   30.96         0.75   20.00
2014-03-13   1,923.57   29.00         0.75   20.00
2013-03-13   1,630.74   24.59         0.75   20.00
2012-03-13   1,310.33   19.76         0.75   20.00
2011-03-13   1,345.20   20.28         0.75   20.00
2010-03-13   1,089.41   16.43         0.75   20.00
2009-03-13     919.14   13.86         0.50   13.33
2008-03-13   1,400.38   21.11         3.50   93.33
2007-03-13   1,530.62   23.08         6.25  166.67
2006-03-13   1,270.09   19.15         5.50  146.67
2005-03-13   1,191.50   17.97         3.50   93.33
2004-03-13   1,120.68   16.90         2.00   53.33
2003-03-13     963.59   14.53         2.25   60.00
2002-03-13   1,067.14   16.09                     
2001-03-13   1,255.82   18.94                     
2000-03-13   1,420.60   21.42                     
1999-03-13   1,301.84   19.63                     
1998-03-13   1,090.82   16.45                     
1997-03-13     848.28   12.79                     
1996-03-13     669.12   10.09                     
1995-03-13     533.40    8.04                     
1994-03-13     456.50    6.88                     
1993-03-13     450.19    6.79                     
1992-03-13     415.35    6.26                     
1991-03-13     389.83    5.88                     
1990-03-13     361.23    5.45                     
1989-03-13     320.52    4.83                     
1988-03-13     262.16    3.95                     
1987-03-13     290.10    4.37                     
1986-03-13     247.35    3.73                     
1985-03-13     189.55    2.86                     
1984-12-01     181.18    2.73                     

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.

⇒ Cboe Indices: ^VIX - CBOE Volatility Index

⇐ SNP: ^GSPC - Standard and Poor's 500

⇑ US Market Indices

⇑⇑ Market Indices