Semiconductor Stocks Drive Nasdaq Gains Amid Rate Hike Expectations

The Nasdaq 100 index surged 1.7% on Thursday, with semiconductor stocks leading the way at 3.1%. The interest rate market is pricing a policy rate of 4.74% for year-end 2027, an increase of 22 basis points over the previous week.

Treasury yields reached a high of 5.04% on Tuesday, their highest level since 2007. However, they closed the week at 5.00%. The Federal Reserve's balance sheet expanded by $207 billion over the past 40 weeks, with a recent increase of $5.8 billion.

The commentary reflects on the potential impact of former Fed member Kevin Warsh staying in his position. It suggests that if he had remained, it might have led to different policy decisions.