Do Interest Rates Go Down As the Stock Market Goes Down?. Interest rates and stock market returns are not directly tied to one another. Interest rates - the rate borrowers pay to lenders in exchange for the use of their money - are tied to the discount rate set by the Federal Reserve, to inflation expectations, to Wars, inflation, government policy, technological change, corporate performance, and interest rates can cause a market to go up and down. The stock market consists of exchanges or OTC markets If you have clicked through to this article, the market is likely in a down cycle, and you are worried about your 401(k) or other retirement investments. Should you worry about what the market did today? The answer may depend upon several factors, including your proximity to retirement, your tolerance for risk, and your skill and experience with stock analysis.