Nasdaq-100 Index Falls on Warsh's Rate Hike Warning

The Nasdaq-100 Index closed Friday about 0.5% lower after Federal Reserve Chair Kevin Warsh's speech at Jackson Hole, which raised the probability of a September rate increase to 57%. The index had posted a 0.9% gain for the week, largely due to NVIDIA Corporation's blowout second-quarter fiscal 2027 earnings report.

NVIDIA reported data center revenue of $89 billion in the second quarter, a 138% increase over the same period last year, and guided third-quarter revenue to $108 billion. The company reached a $4 trillion market capitalization on the news.

The other megacap components contributed positively through the week, with Amazon gaining 3.47%, Microsoft rising 1.93%, and Apple adding 1.58%. However, these gains were met with a wall when Warsh spoke about his approach to monetary policy, describing it as quieter and less committed to forward guidance.

The 10-year Treasury yield rose to 4.679% on the session, and growth-sensitive names sold off accordingly. This concentration makes the Nasdaq-100 a high-velocity vehicle in both directions, but also makes it different from its sister benchmark, the Nasdaq Composite.