Seagate and Western Digital Surge; JM Smucker Stock Slides

Shares of two data storage providers were among the top performers in the benchmark index to kick off the trading week on signs of booming demand for artificial intelligence. Meanwhile, shares of a major packaged food company came under pressure after an analyst cautioned that price hikes were weighing on sales volumes.

The S&P 500 added 0.5%, closing at a record high as investors monitored U.S.-China trade talks and ahead of this week’s interest-rate decision from the Federal Reserve. The Nasdaq was up 0.9%, extending its streak of consecutive record closing highs to six, while the Dow ticked 0.1% higher. Click here to read Investopedia’s full coverage of today’s trading.

Seagate Technology Holdings (STX) stock soared 7.7% to a record high, notching the S&P 500’s top daily performance. While the company offers a diverse range of data storage solutions, Seagate has attracted attention from investors for its large drives to support AI data centers. Meanwhile, shares of industry peer Western Digital (WDC) jumped 4.8%, also reaching an all-time high, after the company reportedly said it will lift prices across its portfolio of hard disk drive products.

Shares of Albemarle (ALB), the world’s largest lithium producer, gained 6.7%. With Monday’s move higher, Albemarle stock bounced back from steep losses posted in the prior trading week after the operator of a major lithium mine in China that had halted operations said it would restart production sooner than expected. Although the news reduced optimism about an improvement in the oversupply conditions that have been pressuring lithium prices, analysts have pointed to Albemarle’s progress on reducing costs and improving its balance sheet as it navigates the challenging market environment.

Alphabet (GOOGL) shares gained more than 4%, making the Google parent the fourth company to reach the $3 trillion market capitalization milestone. The tech giant received a major boost at the beginning of September when a judge in an antitrust case ruled that Alphabet would not be required to divest its Chrome browser.

Arista Networks (ANET) shares advanced 4.3% on Monday, clawing back a portion of the heavy decline suffered Friday as the computer networking specialist detailed its long-term growth outlook at its analyst day event. Although the company’s forecast for a downtick in operating margin may have contributed to the market’s initially negative response, Arista guided for strong growth in AI networking revenue, prompting numerous investment research firms to boost their price targets on the stock.

Corteva (CTVA) shares dropped 5.7%, losing the most of any S&P 500 stock, following a report that the agricultural firm is evaluating a plan to split its seed and pesticide businesses into two distinct companies. According to The Wall Street Journal, the possible separation could help protect Corteva’s seed business from any potential liabilities related to its pesticides and weed-killing chemicals. Corteva formed in 2019 through the spinoff of the DowDuPont chemical conglomerate’s agricultural division.

J.M. Smucker (SJM) shares sank 5.2% after the investment research firm Argus downgraded the stock to “hold” from “buy.” Analysts pointed to pressure on sales volumes as the maker of fruit preserves and other packaged foods has been raising prices in response to supply chain issues and commodity cost inflation. The company’s coffee business, home to the Folgers, Dunkin’, and Café Bustelo brands, is a particular area of concern due to increasing commodity prices and tariff impacts, analysts say.

Shares of financial data and software provider FactSet Research Systems (FDS) slid 4.8%. Analysts at Rothschild Redburn upgraded the stock late last week to “neutral” from “sell,” pointing to a potential for a turnaround under new CEO Sanoke Viswanathan, who took the reins at FactSet earlier this month. However, Rothschild analysts also lowered their price target and earnings per share estimates, noting broad pressure on FactSet’s customer base and suggesting that AI could disrupt its financial services business.