Closing Bell: Nasdaq Leads Rally as WDC Beats on AI Tailwinds

Key Points

• U.S. equities closed higher, led by the Nasdaq‑100 (+0.94%); Tech and Consumer Discretionary outperformed, while Energy and Industrials lagged.
• WDC beat Q3 estimates and guided Q4 higher on strong AI‑driven data center demand; margins expanded, dividend raised 20%, shares slipped post‑print after a sharp YTD run.
• Japan intervened in FX markets for the first time in nearly two years.

U.S. equities finished the day higher, with the S&P 500 up 0.29% and the Nasdaq‑100 gaining 0.94%, while the Russell 2000 advanced 0.46%. Information Technology and Consumer Discretionary led the upside, while Energy and Industrials lagged.

Western Digital Beats Q3, Guides Higher on AI-Driven Data Center Demand

Western Digital (WDC) delivered a strong Q3 FY2026 beat, with revenue surging 45% YoY to $3.34B and adjusted EPS of $2.72, as robust AI-driven data center demand and favorable pricing for high-capacity HDDs drove results. Gross margin expanded to 50.2%, operating income reached $1.19B, and the company raised its quarterly dividend 20% to $0.15/share, alongside maintaining sizable buyback authorizations. Management guided confidently into Q4, forecasting revenue of $3.65B ± $100M and non-GAAP EPS of $3.25, reflecting continued momentum from AI workloads and its post-SanDisk, pure-play data center focus.

Japan Intervenes to Support Yen

Japan stepped into FX markets for the first time in nearly two years to support the yen, triggering a sharp currency move as USD/JPY fell as much as 3% on the day—its largest single‑day drop since December 2022. The dollar slid to as low as 155.5 yen after earlier touching 160.7, amid crowded short‑yen positioning and increasingly forceful rhetoric from Japanese officials warning of “decisive action” on multiple fronts. While the intervention delivered an immediate jolt to the currency, analysts cautioned its durability may be limited without a reinforcing shift in monetary policy, with some arguing a June BoJ rate hike would be needed to stabilize the yen.

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