Financial ConditionsWeekly

SPY & St. Louis Fed Financial Stress Index

An index measuring the degree of financial stress in markets, with zero representing normal conditions.

SPY Price

$688.98

Financial Stress Index

Last Data: Jan 16, 2026

Last Release: Jan 21, 2026

Next Release: Jan 28, 2026

-0.65

4-Wk MA: -0.62

What It Measures

The St. Louis Fed Financial Stress Index (STLFSI) measures financial market stress using 18 weekly data series including: - **Interest Rates**: Fed funds rate, Treasury yields, corporate bond yields - **Yield Spreads**: Corporate spreads, TED spread, commercial paper spreads - **Volatility**: VIX, bond market volatility - **Other Indicators**: S&P 500 returns, exchange rate volatility The index uses principal component analysis to extract a common stress factor from these variables.

Why It Matters

**Real-Time Stress Monitor**: Weekly updates provide timely warning of emerging financial stress. **Crisis Detection**: Spikes in the index have coincided with major financial market disruptions. **Simplicity**: Single number summarizes complex financial market dynamics. **Historical Comparison**: Normalized construction allows comparison across different time periods.

Key Levels

Above +2

Severe financial stress (crisis levels)

+1 to +2

Elevated financial stress

0 to +1

Mild stress, above average

-1 to 0

Below-average stress, calm markets

Below -1

Very low stress, complacency risk

Data Sources

SPY: S&P 500 ETF daily OHLCV data (1993-02-02 to 2026-01-22)

STLFSI: STLFSI4 - St. Louis Fed Financial Stress Index from Federal Reserve Bank of St. Louis

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