Interest rates play a significant role in determining stock prices. When interest rates are low, it becomes less expensive for companies to borrow money, which can lead to increased investment in growth and expansion. This can boost stock prices as investors anticipate higher earnings for these companies in the future. On the other hand, when interest rates are high, it becomes more expensive for companies to borrow money, which can lead to decreased investment and slower growth. This can cause stock prices to decrease as investors anticipate lower earnings for these companies. Additionally, high-interest rates tend to attract investors to bonds and other fixed-income securities, away from the stock market, which can also lead to decreased demand and lower stock prices. It's important to note that the relationship between interest rates and stock prices is not linear, and other factors like economic growth, inflation, and a company's performance also play a role.