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
   2026-06-17: 7420.10009766 USD
with:
   US Fed Discount Rate
   US: DISC
   2026-06-17: 3.75000000 USD

                S&P 500        US Fed Discount Rat
               ^GSPC  Growth%        DISC  Growth%
           ---------- -------   ---------- -------
2026-06-17   7,420.10  100.00         3.75  100.00
2026-06-16   7,511.35  101.23         3.75  100.00
2026-06-15   7,554.29  101.81         3.75  100.00
2026-06-12   7,431.46  100.15         3.75  100.00
2026-06-11   7,394.30   99.65         3.75  100.00
2026-06-10   7,266.99   97.94         3.75  100.00
2026-06-09   7,386.65   99.55         3.75  100.00
2026-06-08   7,405.73   99.81         3.75  100.00
2026-06-05   7,383.74   99.51         3.75  100.00
2026-06-04   7,584.31  102.21         3.75  100.00
2026-06-03   7,553.68  101.80         3.75  100.00
2026-06-02   7,609.78  102.56         3.75  100.00
2026-06-01   7,599.96  102.42         3.75  100.00
2026-05-29   7,580.06  102.16         3.75  100.00
2026-05-28   7,563.63  101.93         3.75  100.00
2026-05-27   7,520.36  101.35         3.75  100.00
2026-05-26   7,519.12  101.33         3.75  100.00
2026-05-22   7,473.47  100.72         3.75  100.00
2026-05-21   7,445.72  100.35         3.75  100.00
2026-05-20   7,432.97  100.17         3.75  100.00
2026-05-17   7,408.50   99.84         3.75  100.00
2026-04-17   7,126.06   96.04         3.75  100.00
2026-03-17   6,716.09   90.51         3.75  100.00
2026-02-17   6,843.22   92.23         3.75  100.00
2026-01-17   6,940.01   93.53         3.75  100.00
2025-12-17   6,721.43   90.58         3.75  100.00
2025-11-17   6,672.41   89.92         4.00  106.67
2025-10-17   6,664.01   89.81         4.25  113.33
2025-09-17   6,600.35   88.95         4.50  120.00
2025-08-17   6,449.80   86.92         4.50  120.00
2025-07-17   6,297.36   84.87         4.50  120.00
2025-06-17   5,982.72   80.63         4.50  120.00
2024-06-17   5,473.23   73.76         5.50  146.67
2023-06-17   4,409.59   59.43         5.25  140.00
2022-06-17   3,674.84   49.53         1.75   46.67
2021-06-17   4,221.86   56.90         0.25    6.67
2020-06-17   3,113.49   41.96         0.25    6.67
2019-06-17   2,889.67   38.94         3.00   80.00
2018-06-17   2,779.66   37.46         2.50   66.67
2017-06-17   2,433.15   32.79         1.75   46.67
2016-06-17   2,071.22   27.91         1.00   26.67
2015-06-17   2,100.44   28.31         0.75   20.00
2014-06-17   2,003.37   27.00         0.75   20.00
2013-06-17   1,632.97   22.01         0.75   20.00
2012-06-17   1,406.58   18.96         0.75   20.00
2011-06-17   1,218.89   16.43         0.75   20.00
2010-06-17   1,049.33   14.14         0.75   20.00
2009-06-17   1,020.62   13.75         0.50   13.33
2008-06-17   1,282.83   17.29         2.25   60.00
2007-06-17   1,473.99   19.86         6.25  166.67
2006-06-17   1,303.82   17.57         6.00  160.00
2005-06-17   1,220.33   16.45         4.00  106.67
2004-06-17   1,104.24   14.88         2.00   53.33
2003-06-17   1,008.01   13.58         2.25   60.00
2002-06-17     916.07   12.35                     
2001-06-17   1,133.58   15.28                     
2000-06-17   1,517.68   20.45                     
1999-06-17   1,320.41   17.80                     
1998-06-17     957.28   12.90                     
1997-06-17     899.47   12.12                     
1996-06-17     651.99    8.79                     
1995-06-17     561.88    7.57                     
1994-06-17     475.49    6.41                     
1993-06-17     463.56    6.25                     
1992-06-17     414.03    5.58                     
1991-06-17     395.43    5.33                     
1990-06-17     322.56    4.35                     
1989-06-17     351.45    4.74                     
1988-06-17     261.52    3.52                     
1987-06-17     329.80    4.44                     
1986-06-17     252.93    3.41                     
1985-06-17     188.63    2.54                     
1984-12-01     181.18    2.44                     

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