Western Digital Leads Nasdaq 100 Gainers with 4% Rally on Lower Yields
Western Digital shares jumped over 4% to lead Nasdaq 100 gainers as chipmakers rallied on a 2 basis-point decline in the 10-year Treasury yield. The tech surge helped lift the Nasdaq 100 by 0.8% while travel stocks posted gains after airlines raised first-quarter revenue forecasts.
1. Western Digital Stock Rally
Western Digital shares climbed more than 4% to lead gainers in the Nasdaq 100, outpacing peers such as Seagate Technology and Micron Technology. The move reflects heightened investor demand for data-storage names driven by strong chip sector momentum.
2. Treasury Yield Decline
The 10-year Treasury yield fell by 2 basis points to 4.20%, easing borrowing costs and boosting valuations for high-growth tech names. Lower yields have historically supported data-storage and semiconductor companies by reducing discount rates on future cash flows.
3. Broader Market Rally
The Nasdaq 100 rose 0.8% as chipmakers and travel stocks extended gains, supported by a slowdown in bond yields. Delta Air Lines, Expedia Group and other travel firms saw share prices rise between 3% and 5% after raising first-quarter revenue forecasts.
4. FOMC Meeting Expectations
Investors expect the Federal Reserve to keep the federal funds target range unchanged at 3.50%–3.75% following a core PCE inflation reading of 3.1%, above the 2.0% goal. Markets assign just a 1% probability to a rate cut at the upcoming meeting, indicating an anticipated policy pause.