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
   2026-10-16: 7659.43994141 USD
with:
   US Fed Discount Rate
   US: DISC
   2026-10-16: 3.75000000 USD

                S&P 500        US Fed Discount Rat
               ^GSPC  Growth%        DISC  Growth%
           ---------- -------   ---------- -------
2026-10-16   7,659.44  100.00         3.75  100.00
2026-10-15   7,744.06  101.10         3.75  100.00
2026-10-14   7,718.94  100.78         3.75  100.00
2026-10-13   7,805.45  101.91         3.75  100.00
2026-10-12   7,807.24  101.93         3.75  100.00
2026-10-09   7,811.54  101.99         3.75  100.00
2026-10-08   7,765.36  101.38         3.75  100.00
2026-10-07   7,801.77  101.86         3.75  100.00
2026-10-06   7,818.93  102.08         3.75  100.00
2026-10-05   7,773.95  101.50         3.75  100.00
2026-10-02   7,722.72  100.83         3.75  100.00
2026-10-01   7,666.45  100.09         3.75  100.00
2026-09-30   7,651.54   99.90         3.75  100.00
2026-09-29   7,670.84  100.15         3.75  100.00
2026-09-28   7,683.69  100.32         3.75  100.00
2026-09-25   7,743.41  101.10         3.75  100.00
2026-09-24   7,704.13  100.58         3.75  100.00
2026-09-23   7,706.03  100.61         3.75  100.00
2026-09-22   7,764.64  101.37         3.75  100.00
2026-09-21   7,764.70  101.37         3.75  100.00
2026-09-18   7,650.50   99.88         3.75  100.00
2026-09-16   7,551.81   98.59         3.75  100.00
2026-08-16   7,785.76  101.65         3.75  100.00
2026-07-16   7,533.77   98.36         3.75  100.00
2026-06-16   7,511.35   98.07         3.75  100.00
2026-05-16   7,408.50   96.72         3.75  100.00
2026-04-16   7,041.28   91.93         3.75  100.00
2026-03-16   6,699.38   87.47         3.75  100.00
2026-02-16   6,836.17   89.25         3.75  100.00
2026-01-16   6,940.01   90.61         3.75  100.00
2025-12-16   6,800.26   88.78         3.75  100.00
2025-11-16   6,734.11   87.92         4.00  106.67
2025-10-16   6,629.07   86.55         4.25  113.33
2024-10-16   5,842.47   76.28         5.00  133.33
2023-10-16   4,373.63   57.10         5.50  146.67
2022-10-16   3,583.07   46.78         3.25   86.67
2021-10-16   4,471.37   58.38         0.25    6.67
2020-10-16   3,483.81   45.48         0.25    6.67
2019-10-16   2,989.69   39.03         2.50   66.67
2018-10-16   2,809.92   36.69         2.75   73.33
2017-10-16   2,557.64   33.39         1.75   46.67
2016-10-16   2,132.98   27.85         1.00   26.67
2015-10-16   2,033.11   26.54         0.75   20.00
2014-10-16   2,067.56   26.99         0.75   20.00
2013-10-16   1,805.81   23.58         0.75   20.00
2012-10-16   1,416.18   18.49         0.75   20.00
2011-10-16   1,246.96   16.28         0.75   20.00
2010-10-16   1,180.55   15.41         0.75   20.00
2009-10-16   1,095.63   14.30         0.50   13.33
2008-10-16     896.24   11.70         1.75   46.67
2007-10-16   1,481.14   19.34         5.25  140.00
2006-10-16   1,400.63   18.29         6.25  166.67
2005-10-16   1,249.48   16.31         4.75  126.67
2004-10-16   1,173.82   15.33         2.75   73.33
2003-10-16   1,058.20   13.82         2.00   53.33
2002-10-16     936.31   12.22                     
2001-10-16   1,139.45   14.88                     
2000-10-16   1,314.95   17.17                     
1999-10-16   1,388.91   18.13                     
1998-10-16   1,163.63   15.19                     
1997-10-16     955.40   12.47                     
1996-10-16     757.02    9.88                     
1995-10-16     605.37    7.90                     
1994-10-16     453.69    5.92                     
1993-10-16     461.79    6.03                     
1992-10-16     431.35    5.63                     
1991-10-16     375.22    4.90                     
1990-10-16     322.22    4.21                     
1989-10-16     345.99    4.52                     
1988-10-16     273.70    3.57                     
1987-10-16     230.30    3.01                     
1986-10-16     249.22    3.25                     
1985-10-16     202.17    2.64                     
1984-12-01     181.18    2.37                     

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

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