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Western Digital Stock: Western Digital (WDC) shares climbed an additional 7% on Tuesday, building on a sharp rally from the previous session.
The data storage company's stock surged 16% on Monday after Morgan Stanley raised its price target and held its Overweight rating on the shares.
The firm lifted its price target to $650, up from a previous target of $488 — a increase of more than 33%.
Western Digital closed Monday's session at $653.53, finishing as the top performer in the S&P 500.
The company was not alone in its record-setting run.
Memory chip manufacturer Micron Technology, storage maker Sandisk, and chipmaker AMD all closed at all-time highs on Monday as well, joining roughly 30 S&P 500 stocks that reached record levels in the same session.
The broader market rally was driven in part by renewed optimism around the AI trade.
Stocks moved higher Monday following the announcement of a U.S.-Iran peace agreement aimed at ending hostilities in the Middle East and reopening the Strait of Hormuz.
Investors interpreted the development as a potential relief valve for energy-driven inflation pressures.
Markets bet that the Federal Reserve may be able to look past the recent spike in energy prices if oil shipments resume through the strategically critical waterway.
That optimism, however, has not fully quieted debate on Wall Street over the Fed's next move.
Analysts and traders have been closely watching whether policymakers will adopt a more hawkish tone at this week's meeting.
Some have raised the possibility that sustained energy price increases could even revive talk of rate hikes — a scenario markets had largely set aside in favor of expectations for rate cuts.
Goldman Sachs analysts have already adjusted their outlook, pushing back their forecast for the next round of rate cuts.
The firm now expects easing to begin in the second half of next year.
Visual Disclaimer: This is an AI-generated illustrative portrait. It is used for creative representation and does not depict a real-time event. Created by AD News Live.
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