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
   2026-03-31: 6528.52001953 USD
with:
   US Fed Discount Rate
   US: DISC
   2026-03-31: 3.75000000 USD

                S&P 500        US Fed Discount Rat
               ^GSPC  Growth%        DISC  Growth%
           ---------- -------   ---------- -------
2026-03-31   6,528.52  100.00         3.75  100.00
2026-03-30   6,343.72   97.17         3.75  100.00
2026-03-27   6,368.85   97.55         3.75  100.00
2026-03-26   6,477.16   99.21         3.75  100.00
2026-03-25   6,591.90  100.97         3.75  100.00
2026-03-24   6,556.37  100.43         3.75  100.00
2026-03-23   6,581.00  100.80         3.75  100.00
2026-03-20   6,506.48   99.66         3.75  100.00
2026-03-19   6,606.49  101.19         3.75  100.00
2026-03-18   6,624.70  101.47         3.75  100.00
2026-03-17   6,716.09  102.87         3.75  100.00
2026-03-16   6,699.38  102.62         3.75  100.00
2026-03-13   6,632.19  101.59         3.75  100.00
2026-03-12   6,672.62  102.21         3.75  100.00
2026-03-11   6,775.80  103.79         3.75  100.00
2026-03-10   6,781.48  103.87         3.75  100.00
2026-03-09   6,795.99  104.10         3.75  100.00
2026-03-06   6,740.02  103.24         3.75  100.00
2026-03-05   6,830.71  104.63         3.75  100.00
2026-03-04   6,869.50  105.22         3.75  100.00
2026-03-03   6,816.63  104.41         3.75  100.00
2026-01-31   6,939.03  106.29         3.75  100.00
2025-12-31   6,845.50  104.86         3.75  100.00
2025-12-01   6,812.63  104.35         4.00  106.67
2025-10-31   6,840.20  104.77         4.00  106.67
2025-10-01   6,711.20  102.80         4.25  113.33
2025-08-31   6,460.26   98.95         4.50  120.00
2025-07-31   6,339.39   97.10         4.50  120.00
2025-07-01   6,198.01   94.94         4.50  120.00
2025-05-31   5,911.69   90.55         4.50  120.00
2025-05-01   5,604.14   85.84         4.50  120.00
2025-03-31   5,611.85   85.96         4.50  120.00
2024-03-31   5,254.35   80.48         5.50  146.67
2023-03-31   4,109.31   62.94         5.00  133.33
2022-03-31   4,530.41   69.39         0.50   13.33
2021-03-31   3,972.89   60.85         0.25    6.67
2020-03-31   2,584.59   39.59         0.25    6.67
2019-03-31   2,834.40   43.42         3.00   80.00
2018-03-31   2,640.87   40.45         2.25   60.00
2017-03-31   2,362.72   36.19         1.50   40.00
2016-03-31   2,059.74   31.55         1.00   26.67
2015-03-31   2,067.89   31.67         0.75   20.00
2014-03-31   1,923.57   29.46         0.75   20.00
2013-03-31   1,630.74   24.98         0.75   20.00
2012-03-31   1,310.33   20.07         0.75   20.00
2011-03-31   1,345.20   20.60         0.75   20.00
2010-03-31   1,089.41   16.69         0.75   20.00
2009-03-31     919.14   14.08         0.50   13.33
2008-03-31   1,400.38   21.45         2.50   66.67
2007-03-31   1,530.62   23.45         6.25  166.67
2006-03-31   1,270.09   19.45         5.75  153.33
2005-03-31   1,191.50   18.25         3.75  100.00
2004-03-31   1,120.68   17.17         2.00   53.33
2003-03-31     963.59   14.76         2.25   60.00
2002-03-31   1,067.14   16.35                     
2001-03-31   1,255.82   19.24                     
2000-03-31   1,420.60   21.76                     
1999-03-31   1,301.84   19.94                     
1998-03-31   1,090.82   16.71                     
1997-03-31     848.28   12.99                     
1996-03-31     669.12   10.25                     
1995-03-31     533.40    8.17                     
1994-03-31     456.50    6.99                     
1993-03-31     450.19    6.90                     
1992-03-31     415.35    6.36                     
1991-03-31     389.83    5.97                     
1990-03-31     361.23    5.53                     
1989-03-31     320.52    4.91                     
1988-03-31     262.16    4.02                     
1987-03-31     290.10    4.44                     
1986-03-31     247.35    3.79                     
1985-03-31     189.55    2.90                     
1984-12-01     181.18    2.78                     

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