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
   2026-09-25: 7743.41015625 USD
with:
   US Fed Discount Rate
   US: DISC
   2026-09-25: 3.75000000 USD

                S&P 500        US Fed Discount Rat
               ^GSPC  Growth%        DISC  Growth%
           ---------- -------   ---------- -------
2026-09-25   7,743.41  100.00         3.75  100.00
2026-09-24   7,704.13   99.49         3.75  100.00
2026-09-23   7,706.03   99.52         3.75  100.00
2026-09-22   7,764.64  100.27         3.75  100.00
2026-09-21   7,764.70  100.27         3.75  100.00
2026-09-18   7,650.50   98.80         3.75  100.00
2026-09-17   7,637.76   98.64         3.75  100.00
2026-09-16   7,551.81   97.53         3.75  100.00
2026-09-15   7,585.73   97.96         3.75  100.00
2026-09-14   7,619.98   98.41         3.75  100.00
2026-09-11   7,656.98   98.88         3.75  100.00
2026-09-10   7,591.70   98.04         3.75  100.00
2026-09-09   7,636.36   98.62         3.75  100.00
2026-09-08   7,673.52   99.10         3.75  100.00
2026-09-04   7,718.60   99.68         3.75  100.00
2026-09-03   7,747.71  100.06         3.75  100.00
2026-09-02   7,666.60   99.01         3.75  100.00
2026-09-01   7,631.47   98.55         3.75  100.00
2026-08-31   7,686.14   99.26         3.75  100.00
2026-08-25   7,677.28   99.15         3.75  100.00
2026-07-25   7,411.98   95.72         3.75  100.00
2026-06-25   7,357.49   95.02         3.75  100.00
2026-05-25   7,473.47   96.51         3.75  100.00
2026-04-25   7,165.08   92.53         3.75  100.00
2026-03-25   6,591.90   85.13         3.75  100.00
2026-02-25   6,946.13   89.70         3.75  100.00
2026-01-25   6,915.61   89.31         3.75  100.00
2025-12-25   6,932.05   89.52         3.75  100.00
2025-11-25   6,765.88   87.38         4.00  106.67
2025-10-25   6,791.69   87.71         4.25  113.33
2025-09-25   6,604.72   85.29         4.25  113.33
2024-09-25   5,722.26   73.90         5.00  133.33
2023-09-25   4,337.44   56.01         5.50  146.67
2022-09-25   3,693.23   47.70         3.25   86.67
2021-09-25   4,455.48   57.54         0.25    6.67
2020-09-25   3,298.46   42.60         0.25    6.67
2019-09-25   2,984.87   38.55         2.50   66.67
2018-09-25   2,915.56   37.65         2.50   66.67
2017-09-25   2,496.66   32.24         1.75   46.67
2016-09-25   2,164.69   27.96         1.00   26.67
2015-09-25   1,931.34   24.94         0.75   20.00
2014-09-25   2,067.56   26.70         0.75   20.00
2013-09-25   1,805.81   23.32         0.75   20.00
2012-09-25   1,416.18   18.29         0.75   20.00
2011-09-25   1,246.96   16.10         0.75   20.00
2010-09-25   1,180.55   15.25         0.75   20.00
2009-09-25   1,095.63   14.15         0.50   13.33
2008-09-25     896.24   11.57         2.25   60.00
2007-09-25   1,481.14   19.13         5.25  140.00
2006-09-25   1,400.63   18.09         6.25  166.67
2005-09-25   1,249.48   16.14         4.75  126.67
2004-09-25   1,173.82   15.16         2.75   73.33
2003-09-25   1,058.20   13.67         2.00   53.33
2002-09-25     936.31   12.09                     
2001-09-25   1,139.45   14.72                     
2000-09-25   1,314.95   16.98                     
1999-09-25   1,388.91   17.94                     
1998-09-25   1,163.63   15.03                     
1997-09-25     955.40   12.34                     
1996-09-25     757.02    9.78                     
1995-09-25     605.37    7.82                     
1994-09-25     453.69    5.86                     
1993-09-25     461.79    5.96                     
1992-09-25     431.35    5.57                     
1991-09-25     375.22    4.85                     
1990-09-25     322.22    4.16                     
1989-09-25     345.99    4.47                     
1988-09-25     273.70    3.53                     
1987-09-25     230.30    2.97                     
1986-09-25     249.22    3.22                     
1985-09-25     202.17    2.61                     
1984-12-01     181.18    2.34                     

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