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
   2026-09-04: 7718.60009766 USD
with:
   US Fed Discount Rate
   US: DISC
   2026-09-04: 3.75000000 USD

                S&P 500        US Fed Discount Rat
               ^GSPC  Growth%        DISC  Growth%
           ---------- -------   ---------- -------
2026-09-04   7,718.60  100.00         3.75  100.00
2026-09-03   7,747.71  100.38         3.75  100.00
2026-09-02   7,666.60   99.33         3.75  100.00
2026-09-01   7,631.47   98.87         3.75  100.00
2026-08-31   7,686.14   99.58         3.75  100.00
2026-08-27   7,730.99  100.16         3.75  100.00
2026-08-26   7,675.70   99.44         3.75  100.00
2026-08-25   7,677.28   99.46         3.75  100.00
2026-08-24   7,652.86   99.15         3.75  100.00
2026-08-21   7,674.37   99.43         3.75  100.00
2026-08-20   7,641.16   99.00         3.75  100.00
2026-08-19   7,707.98   99.86         3.75  100.00
2026-08-18   7,691.76   99.65         3.75  100.00
2026-08-17   7,745.06  100.34         3.75  100.00
2026-08-14   7,785.76  100.87         3.75  100.00
2026-08-13   7,798.99  101.04         3.75  100.00
2026-08-12   7,748.50  100.39         3.75  100.00
2026-08-11   7,728.20  100.12         3.75  100.00
2026-08-10   7,753.11  100.45         3.75  100.00
2026-08-07   7,757.64  100.51         3.75  100.00
2026-08-04   7,736.52  100.23         3.75  100.00
2026-07-04   7,483.24   96.95         3.75  100.00
2026-06-04   7,584.31   98.26         3.75  100.00
2026-05-04   7,200.75   93.29         3.75  100.00
2026-04-04   6,582.69   85.28         3.75  100.00
2026-03-04   6,869.50   89.00         3.75  100.00
2026-02-04   6,882.72   89.17         3.75  100.00
2026-01-04   6,858.47   88.86         3.75  100.00
2025-12-04   6,857.12   88.84         4.00  106.67
2025-11-04   6,771.55   87.73         4.00  106.67
2025-10-04   6,715.79   87.01         4.25  113.33
2025-09-04   6,502.08   84.24         4.50  120.00
2024-09-04   5,520.07   71.52         5.50  146.67
2023-09-04   4,567.80   59.18         5.50  146.67
2022-09-04   3,924.26   50.84         2.50   66.67
2021-09-04   4,535.43   58.76         0.25    6.67
2020-09-04   3,426.96   44.40         0.25    6.67
2019-09-04   2,937.78   38.06         2.75   73.33
2018-09-04   2,896.72   37.53         2.50   66.67
2017-09-04   2,647.58   34.30         1.75   46.67
2016-09-04   2,179.98   28.24         1.00   26.67
2015-09-04   1,921.22   24.89         0.75   20.00
2014-09-04   2,067.56   26.79         0.75   20.00
2013-09-04   1,805.81   23.40         0.75   20.00
2012-09-04   1,416.18   18.35         0.75   20.00
2011-09-04   1,246.96   16.16         0.75   20.00
2010-09-04   1,180.55   15.29         0.75   20.00
2009-09-04   1,095.63   14.19         0.50   13.33
2008-09-04     896.24   11.61         2.25   60.00
2007-09-04   1,481.14   19.19         5.75  153.33
2006-09-04   1,400.63   18.15         6.25  166.67
2005-09-04   1,249.48   16.19         4.50  120.00
2004-09-04   1,173.82   15.21         2.50   66.67
2003-09-04   1,058.20   13.71         2.00   53.33
2002-09-04     936.31   12.13                     
2001-09-04   1,139.45   14.76                     
2000-09-04   1,314.95   17.04                     
1999-09-04   1,388.91   17.99                     
1998-09-04   1,163.63   15.08                     
1997-09-04     955.40   12.38                     
1996-09-04     757.02    9.81                     
1995-09-04     605.37    7.84                     
1994-09-04     453.69    5.88                     
1993-09-04     461.79    5.98                     
1992-09-04     431.35    5.59                     
1991-09-04     375.22    4.86                     
1990-09-04     322.22    4.17                     
1989-09-04     345.99    4.48                     
1988-09-04     273.70    3.55                     
1987-09-04     230.30    2.98                     
1986-09-04     249.22    3.23                     
1985-09-04     202.17    2.62                     
1984-12-01     181.18    2.35                     

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