A surge in financial stocks lifted Wall Street on Friday, setting new records for the S&P 500 and Dow Jones Industrial Average.
Strong earnings from major U.S. banks fueled market confidence, overshadowing mixed economic data released earlier.
The S&P 500, tracked by SPDR S&P 500 ETF Trust SPY, rose 0.7% to over 5,800 points, marking a nearly 23% increase this year.
Meanwhile, the Dow, followed by SPDR Dow Jones Industrial ETF DIA, climbed 0.8%, reaching 42,780 points.
Chart: S&P 500, Dow Hit All-Time Highs as Banks Exceed Q3 Earnings
Financial Stocks Drive Rally
The financial sector led Friday’s gains, with the Financial Select Sector SPDR Fund XLF jumping 1.9%, its best performance since November 2023.
Major U.S. banks reported better-than-expected Q3 earnings:
- JPMorgan Chase & Co. JPM: Q3 EPS $4.37 (up 4% in trading)
- Wells Fargo & Co. WFC: EPS $1.42 (shares up 6.2%)
- Bank of New York Mellon Corp. BK: Shares up 1.8%
- BlackRock Inc. BLK: Shares up 3.4% after strong revenues
- Other banks, like Bank of America Corp. BAC and Goldman Sachs Inc. GS, saw gains between 2% and 4.8%.
Mixed Economic Data Overshadowed by Strong Earnings
Economic data showed a higher Producer Price Index (PPI) and a decline in consumer sentiment for October. The PPI came in at 1.8% year-over-year, above expectations.
The University of Michigan’s consumer sentiment index dropped to 68.9, missing forecasts.
Despite these mixed signals, investors looked to the strong bank earnings, maintaining optimism ahead of the corporate earnings season.
Top 5 S&P 500 Performers on Friday
| Stock | Sector | Price | 1-day Return (%) |
|---|---|---|---|
| Uber Technologies, Inc. UBER | Industrials | 84.21 | 8.07% |
| Fastenal Company FAST | Industrials | 75.13 | 7.34% |
| Wells Fargo & Company | Financials | 60.99 | 5.61% |
| WW. Grainger, Inc. GWW | Industrials | 1,079.38 | 5.29% |
| Bank of America Corporation | Financials | 41.97 | 4.99% |
Top 5 Dow Performers on Friday
| Stock | Sector | Price | 1-day Return (%) |
|---|---|---|---|
| JPMorgan Chase & Co. | Financials | 221.99 | 4.30% |
| Boeing Company BA | Industrials | 150.55 | 2.68% |
| Goldman Sachs Group, Inc. | Financials | 513.51 | 1.94% |
| Intel Corporation INTC | Tech | 23.63 | 1.78% |
| American Express Company AXP | Financials | 274.73 | 1.58% |
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