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
   2026-01-26: 6950.22998047 USD
with:
   US Fed Discount Rate
   US: DISC
   2026-01-26: 3.75000000 USD

                S&P 500        US Fed Discount Rat
               ^GSPC  Growth%        DISC  Growth%
           ---------- -------   ---------- -------
2026-01-26   6,950.23  100.00         3.75  100.00
2026-01-23   6,915.61   99.50         3.75  100.00
2026-01-22   6,913.35   99.47         3.75  100.00
2026-01-21   6,875.62   98.93         3.75  100.00
2026-01-20   6,796.86   97.79         3.75  100.00
2026-01-16   6,940.01   99.85         3.75  100.00
2026-01-15   6,944.47   99.92         3.75  100.00
2026-01-14   6,926.60   99.66         3.75  100.00
2026-01-13   6,963.74  100.19         3.75  100.00
2026-01-12   6,977.27  100.39         3.75  100.00
2026-01-09   6,966.28  100.23         3.75  100.00
2026-01-08   6,921.46   99.59         3.75  100.00
2026-01-07   6,920.93   99.58         3.75  100.00
2026-01-06   6,944.82   99.92         3.75  100.00
2026-01-05   6,902.05   99.31         3.75  100.00
2026-01-02   6,858.47   98.68         3.75  100.00
2025-12-31   6,845.50   98.49         3.75  100.00
2025-12-30   6,896.24   99.22         3.75  100.00
2025-12-29   6,905.74   99.36         3.75  100.00
2025-12-26   6,929.94   99.71         3.75  100.00
2025-11-26   6,812.61   98.02         4.00  106.67
2025-10-26   6,791.69   97.72         4.25  113.33
2025-09-26   6,643.70   95.59         4.25  113.33
2025-08-26   6,465.94   93.03         4.50  120.00
2025-07-26   6,388.64   91.92         4.50  120.00
2025-06-26   6,141.02   88.36         4.50  120.00
2025-05-26   5,802.82   83.49         4.50  120.00
2025-04-26   5,525.21   79.50         4.50  120.00
2025-03-26   5,712.20   82.19         4.50  120.00
2025-02-26   5,956.06   85.70         4.50  120.00
2025-01-26   6,101.24   87.78         4.50  120.00
2024-01-26   4,890.97   70.37         5.50  146.67
2023-01-26   4,060.43   58.42         4.50  120.00
2022-01-26   4,349.93   62.59         0.25    6.67
2021-01-26   3,849.62   55.39         0.25    6.67
2020-01-26   3,295.47   47.42         2.25   60.00
2019-01-26   2,664.76   38.34         3.00   80.00
2018-01-26   2,872.87   41.33         2.00   53.33
2017-01-26   2,296.68   33.04         1.25   33.33
2016-01-26   1,903.63   27.39         1.00   26.67
2015-01-26   2,104.50   30.28         0.75   20.00
2014-01-26   1,859.45   26.75         0.75   20.00
2013-01-26   1,514.68   21.79         0.75   20.00
2012-01-26   1,365.68   19.65         0.75   20.00
2011-01-26   1,327.22   19.10         0.75   20.00
2010-01-26   1,104.49   15.89         0.50   13.33
2009-01-26     735.09   10.58         0.50   13.33
2008-01-26   1,330.63   19.15         4.00  106.67
2007-01-26   1,406.82   20.24         6.25  166.67
2006-01-26   1,280.66   18.43         5.25  140.00
2005-01-26   1,203.60   17.32         3.25   86.67
2004-01-26   1,144.94   16.47         2.00   53.33
2003-01-26     841.15   12.10         2.25   60.00
2002-01-26   1,106.73   15.92                     
2001-01-26   1,239.94   17.84                     
2000-01-26   1,366.42   19.66                     
1999-01-26   1,238.33   17.82                     
1998-01-26   1,049.34   15.10                     
1997-01-26     790.82   11.38                     
1996-01-26     640.43    9.21                     
1995-01-26     487.39    7.01                     
1994-01-26     467.14    6.72                     
1993-01-26     443.38    6.38                     
1992-01-26     412.70    5.94                     
1991-01-26     367.07    5.28                     
1990-01-26     331.89    4.78                     
1989-01-26     288.86    4.16                     
1988-01-26     267.82    3.85                     
1987-01-26     284.20    4.09                     
1986-01-26     226.92    3.26                     
1985-01-26     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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