Data Storage Stocks Surge on AI Demand While Packaged Food Slides on Downgrade

Seagate Technology and Western Digital led gains in the S&P 500 as AI-driven demand for data storage solutions fueled investor optimism. Seagate shares climbed 7.7% to a record high, with analysts highlighting its role in supplying large-capacity drives for AI data centers.

Meanwhile, J.M. Smucker shares declined after Argus Research downgraded the stock, citing diminishing sales volumes due to repeated price increases. The packaged food sector's struggles contrasted with the tech rally.

The broader market edged higher, with the S&P 500 gaining 0.5% to close at a record. The Nasdaq Composite extended its rally with a 0.9% advance, marking six consecutive record closes. Investors remained focused on Federal Reserve policy signals and ongoing U.S.-China trade discussions.