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
   2026-05-15: 7408.50000000 USD
with:
   US Fed Discount Rate
   US: DISC
   2026-05-15: 3.75000000 USD

                S&P 500        US Fed Discount Rat
               ^GSPC  Growth%        DISC  Growth%
           ---------- -------   ---------- -------
2026-05-15   7,408.50  100.00         3.75  100.00
2026-05-14   7,501.24  101.25         3.75  100.00
2026-05-13   7,444.25  100.48         3.75  100.00
2026-05-12   7,400.96   99.90         3.75  100.00
2026-05-11   7,412.84  100.06         3.75  100.00
2026-05-08   7,398.93   99.87         3.75  100.00
2026-05-07   7,337.11   99.04         3.75  100.00
2026-05-06   7,365.12   99.41         3.75  100.00
2026-05-05   7,259.22   97.99         3.75  100.00
2026-05-04   7,200.75   97.20         3.75  100.00
2026-05-01   7,230.12   97.59         3.75  100.00
2026-04-30   7,209.01   97.31         3.75  100.00
2026-04-29   7,135.95   96.32         3.75  100.00
2026-04-28   7,138.80   96.36         3.75  100.00
2026-04-27   7,173.91   96.83         3.75  100.00
2026-04-24   7,165.08   96.71         3.75  100.00
2026-04-23   7,108.40   95.95         3.75  100.00
2026-04-22   7,137.90   96.35         3.75  100.00
2026-04-21   7,064.01   95.35         3.75  100.00
2026-04-20   7,109.14   95.96         3.75  100.00
2026-04-17   7,126.06   96.19         3.75  100.00
2026-04-15   7,022.95   94.80         3.75  100.00
2026-03-15   6,632.19   89.52         3.75  100.00
2026-02-15   6,836.17   92.27         3.75  100.00
2026-01-15   6,944.47   93.74         3.75  100.00
2025-12-15   6,816.51   92.01         3.75  100.00
2025-11-15   6,734.11   90.90         4.00  106.67
2025-10-15   6,671.06   90.05         4.25  113.33
2025-09-15   6,615.28   89.29         4.50  120.00
2025-08-15   6,449.80   87.06         4.50  120.00
2025-07-15   6,243.76   84.28         4.50  120.00
2025-06-15   5,976.97   80.68         4.50  120.00
2025-05-15   5,916.93   79.87         4.50  120.00
2024-05-15   5,308.15   71.65         5.50  146.67
2023-05-15   4,136.28   55.83         5.25  140.00
2022-05-15   4,023.89   54.31         1.00   26.67
2021-05-15   4,173.85   56.34         0.25    6.67
2020-05-15   2,863.70   38.65         0.25    6.67
2019-05-15   2,850.96   38.48         3.00   80.00
2018-05-15   2,711.45   36.60         2.25   60.00
2017-05-15   2,402.32   32.43         1.50   40.00
2016-05-15   2,046.61   27.63         1.00   26.67
2015-05-15   2,122.73   28.65         0.75   20.00
2014-05-15   1,923.57   25.96         0.75   20.00
2013-05-15   1,630.74   22.01         0.75   20.00
2012-05-15   1,310.33   17.69         0.75   20.00
2011-05-15   1,345.20   18.16         0.75   20.00
2010-05-15   1,089.41   14.70         0.75   20.00
2009-05-15     919.14   12.41         0.50   13.33
2008-05-15   1,400.38   18.90         2.25   60.00
2007-05-15   1,530.62   20.66         6.25  166.67
2006-05-15   1,270.09   17.14         6.00  160.00
2005-05-15   1,191.50   16.08         4.00  106.67
2004-05-15   1,120.68   15.13         2.00   53.33
2003-05-15     963.59   13.01         2.25   60.00
2002-05-15   1,067.14   14.40                     
2001-05-15   1,255.82   16.95                     
2000-05-15   1,420.60   19.18                     
1999-05-15   1,301.84   17.57                     
1998-05-15   1,090.82   14.72                     
1997-05-15     848.28   11.45                     
1996-05-15     669.12    9.03                     
1995-05-15     533.40    7.20                     
1994-05-15     456.50    6.16                     
1993-05-15     450.19    6.08                     
1992-05-15     415.35    5.61                     
1991-05-15     389.83    5.26                     
1990-05-15     361.23    4.88                     
1989-05-15     320.52    4.33                     
1988-05-15     262.16    3.54                     
1987-05-15     290.10    3.92                     
1986-05-15     247.35    3.34                     
1985-05-15     189.55    2.56                     
1984-12-01     181.18    2.45                     

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

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