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
   2026-04-24: 7165.08007813 USD
with:
   US Fed Discount Rate
   US: DISC
   2026-04-24: 3.75000000 USD

                S&P 500        US Fed Discount Rat
               ^GSPC  Growth%        DISC  Growth%
           ---------- -------   ---------- -------
2026-04-24   7,165.08  100.00         3.75  100.00
2026-04-23   7,108.40   99.21         3.75  100.00
2026-04-22   7,137.90   99.62         3.75  100.00
2026-04-21   7,064.01   98.59         3.75  100.00
2026-04-20   7,109.14   99.22         3.75  100.00
2026-04-17   7,126.06   99.46         3.75  100.00
2026-04-16   7,041.28   98.27         3.75  100.00
2026-04-15   7,022.95   98.02         3.75  100.00
2026-04-14   6,967.38   97.24         3.75  100.00
2026-04-13   6,886.24   96.11         3.75  100.00
2026-04-10   6,816.89   95.14         3.75  100.00
2026-04-09   6,824.66   95.25         3.75  100.00
2026-04-08   6,782.81   94.66         3.75  100.00
2026-04-07   6,616.85   92.35         3.75  100.00
2026-04-06   6,611.83   92.28         3.75  100.00
2026-04-02   6,582.69   91.87         3.75  100.00
2026-04-01   6,575.32   91.77         3.75  100.00
2026-03-31   6,528.52   91.12         3.75  100.00
2026-03-30   6,343.72   88.54         3.75  100.00
2026-03-27   6,368.85   88.89         3.75  100.00
2026-03-24   6,556.37   91.50         3.75  100.00
2026-02-24   6,890.07   96.16         3.75  100.00
2026-01-24   6,915.61   96.52         3.75  100.00
2025-12-24   6,932.05   96.75         3.75  100.00
2025-11-24   6,705.12   93.58         4.00  106.67
2025-10-24   6,791.69   94.79         4.25  113.33
2025-09-24   6,637.97   92.64         4.25  113.33
2025-08-24   6,466.91   90.26         4.50  120.00
2025-07-24   6,363.35   88.81         4.50  120.00
2025-06-24   6,092.18   85.03         4.50  120.00
2025-05-24   5,802.82   80.99         4.50  120.00
2025-04-24   5,484.77   76.55         4.50  120.00
2024-04-24   5,071.63   70.78         5.50  146.67
2023-04-24   4,137.04   57.74         5.00  133.33
2022-04-24   4,271.78   59.62         0.50   13.33
2021-04-24   4,180.17   58.34         0.25    6.67
2020-04-24   2,836.74   39.59         0.25    6.67
2019-04-24   2,927.25   40.85         3.00   80.00
2018-04-24   2,634.56   36.77         2.25   60.00
2017-04-24   2,374.15   33.14         1.50   40.00
2016-04-24   2,091.58   29.19         1.00   26.67
2015-04-24   2,117.69   29.56         0.75   20.00
2014-04-24   1,923.57   26.85         0.75   20.00
2013-04-24   1,630.74   22.76         0.75   20.00
2012-04-24   1,310.33   18.29         0.75   20.00
2011-04-24   1,345.20   18.77         0.75   20.00
2010-04-24   1,089.41   15.20         0.75   20.00
2009-04-24     919.14   12.83         0.50   13.33
2008-04-24   1,400.38   19.54         2.50   66.67
2007-04-24   1,530.62   21.36         6.25  166.67
2006-04-24   1,270.09   17.73         5.75  153.33
2005-04-24   1,191.50   16.63         3.75  100.00
2004-04-24   1,120.68   15.64         2.00   53.33
2003-04-24     963.59   13.45         2.25   60.00
2002-04-24   1,067.14   14.89                     
2001-04-24   1,255.82   17.53                     
2000-04-24   1,420.60   19.83                     
1999-04-24   1,301.84   18.17                     
1998-04-24   1,090.82   15.22                     
1997-04-24     848.28   11.84                     
1996-04-24     669.12    9.34                     
1995-04-24     533.40    7.44                     
1994-04-24     456.50    6.37                     
1993-04-24     450.19    6.28                     
1992-04-24     415.35    5.80                     
1991-04-24     389.83    5.44                     
1990-04-24     361.23    5.04                     
1989-04-24     320.52    4.47                     
1988-04-24     262.16    3.66                     
1987-04-24     290.10    4.05                     
1986-04-24     247.35    3.45                     
1985-04-24     189.55    2.65                     
1984-12-01     181.18    2.53                     

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