BlockBeats News, May 23rd. On May 22nd, U.S. Eastern Time, the three major U.S. stock indexes collectively closed higher. The Dow rose by 0.58% to hit another all-time high, the S&P 500 index rose for the 8th consecutive week, and the Nasdaq rose by 0.19%. Chip stocks and quantum computing concept stocks surged across the board, with the Philadelphia Semiconductor Index rising by nearly 2%, reaching a new record high.

Notably, Qualcomm surged by over 11%, Credo Technology and Sijiaxun rose by over 12%; in the quantum computing sector, Rigetti Computing rose by over 19%, D-Wave Quantum rose by over 14%, and IonQ rose by over 8%.

Market risk appetite increased, mainly driven by expectations of easing Middle East tensions. Reports indicated that Qatar has sent a negotiation team to Tehran to assist in reaching an agreement between the U.S. and Iran; Pakistan's Army Chief of Staff, General Munir, also arrived in Iran to mediate. President Trump recently stated that Iran "will never have nuclear weapons" and said "this will end very soon."

Meanwhile, U.S. President Trump convened a senior national security team to discuss the Iran issue. Sources familiar with the matter stated that if negotiations do not make progress, the U.S. is seriously considering launching new military strikes against Iran.

Signs of easing in the situation in the Strait of Hormuz have also emerged. U.S. officials stated that there is currently no evidence of Iran laying mines and no reports of merchant ships being attacked. With reduced safe-haven sentiment, U.S. bond yields fell, and international oil prices retreated after an initial spike.

Furthermore, Kevin Warsh was formally sworn in as the Federal Reserve Chairman, marking the start of the "Warsh era" at the Fed. Warsh stated that he would lead a Fed that is "reform-oriented" and emphasized fulfilling its mandate of controlling inflation and achieving full employment with "independence, clear judgment, and a firm stance."

During the ceremony, President Trump expressed his hope for Warsh to be "a completely independent chairman" but also stressed that he "does not want to hurt economic prosperity while controlling inflation."

With Warsh taking office and recent heating up of inflation expectations, the market's bet on the Fed further tightening its policy has significantly increased. CME's "FedWatch" data shows that traders currently estimate a close to 70% probability of the Fed raising rates again by 2026, whereas at the beginning of the year, the market was generally expecting an interest rate cut cycle.