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
   2026-02-10: 6941.81005859 USD
with:
   US Fed Discount Rate
   US: DISC
   2026-02-10: 3.75000000 USD

                S&P 500        US Fed Discount Rat
               ^GSPC  Growth%        DISC  Growth%
           ---------- -------   ---------- -------
2026-02-10   6,941.81  100.00         3.75  100.00
2026-02-09   6,964.82  100.33         3.75  100.00
2026-02-06   6,932.30   99.86         3.75  100.00
2026-02-05   6,798.40   97.93         3.75  100.00
2026-02-04   6,882.72   99.15         3.75  100.00
2026-02-03   6,917.81   99.65         3.75  100.00
2026-02-02   6,976.44  100.50         3.75  100.00
2026-01-30   6,939.03   99.96         3.75  100.00
2026-01-29   6,969.01  100.39         3.75  100.00
2026-01-28   6,978.03  100.52         3.75  100.00
2026-01-27   6,978.60  100.53         3.75  100.00
2026-01-26   6,950.23  100.12         3.75  100.00
2026-01-23   6,915.61   99.62         3.75  100.00
2026-01-22   6,913.35   99.59         3.75  100.00
2026-01-21   6,875.62   99.05         3.75  100.00
2026-01-20   6,796.86   97.91         3.75  100.00
2026-01-16   6,940.01   99.97         3.75  100.00
2026-01-15   6,944.47  100.04         3.75  100.00
2026-01-14   6,926.60   99.78         3.75  100.00
2026-01-13   6,963.74  100.32         3.75  100.00
2026-01-10   6,966.28  100.35         3.75  100.00
2025-12-10   6,886.68   99.21         4.00  106.67
2025-11-10   6,832.43   98.42         4.00  106.67
2025-10-10   6,552.51   94.39         4.25  113.33
2025-09-10   6,532.04   94.10         4.50  120.00
2025-08-10   6,389.45   92.04         4.50  120.00
2025-07-10   6,280.46   90.47         4.50  120.00
2025-06-10   6,038.81   86.99         4.50  120.00
2025-05-10   5,659.91   81.53         4.50  120.00
2025-04-10   5,268.05   75.89         4.50  120.00
2025-03-10   5,614.56   80.88         4.50  120.00
2025-02-10   6,066.44   87.39         4.50  120.00
2024-02-10   5,026.61   72.41         5.50  146.67
2023-02-10   4,090.46   58.92         4.75  126.67
2022-02-10   4,504.08   64.88         0.25    6.67
2021-02-10   3,909.88   56.32         0.25    6.67
2020-02-10   3,352.09   48.29         2.25   60.00
2019-02-10   2,707.88   39.01         3.00   80.00
2018-02-10   2,619.55   37.74         2.00   53.33
2017-02-10   2,316.10   33.36         1.25   33.33
2016-02-10   1,851.86   26.68         1.00   26.67
2015-02-10   2,068.59   29.80         0.75   20.00
2014-02-10   1,859.45   26.79         0.75   20.00
2013-02-10   1,514.68   21.82         0.75   20.00
2012-02-10   1,365.68   19.67         0.75   20.00
2011-02-10   1,327.22   19.12         0.75   20.00
2010-02-10   1,104.49   15.91         0.50   13.33
2009-02-10     735.09   10.59         0.50   13.33
2008-02-10   1,330.63   19.17         3.50   93.33
2007-02-10   1,406.82   20.27         6.25  166.67
2006-02-10   1,280.66   18.45         5.50  146.67
2005-02-10   1,203.60   17.34         3.50   93.33
2004-02-10   1,144.94   16.49         2.00   53.33
2003-02-10     841.15   12.12         2.25   60.00
2002-02-10   1,106.73   15.94                     
2001-02-10   1,239.94   17.86                     
2000-02-10   1,366.42   19.68                     
1999-02-10   1,238.33   17.84                     
1998-02-10   1,049.34   15.12                     
1997-02-10     790.82   11.39                     
1996-02-10     640.43    9.23                     
1995-02-10     487.39    7.02                     
1994-02-10     467.14    6.73                     
1993-02-10     443.38    6.39                     
1992-02-10     412.70    5.95                     
1991-02-10     367.07    5.29                     
1990-02-10     331.89    4.78                     
1989-02-10     288.86    4.16                     
1988-02-10     267.82    3.86                     
1987-02-10     284.20    4.09                     
1986-02-10     226.92    3.27                     
1985-02-10     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.

⇒ Cboe Indices: ^VIX - CBOE Volatility Index

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

⇑ US Market Indices

⇑⇑ Market Indices