Financial stocks surged on Friday, boosting Wall Streets optimism and leading the S&P 500 and Dow Jones to record highs.
Strong earnings from major U.S. banks helped the market, overshadowing mixed economic data released earlier.
The S&P 500, tracked by the SPDR S&P 500 ETF Trust SPY, surpassed 5,800 points, gaining 0.7% and achieving nearly 23% returns this year.
Meanwhile, the Dow Jones Industrial Average, tracked by the SPDR Dow Jones Industrial ETF DIA, rose 0.8% to reach 42,780 points, breaking previous records.
Chart: S&P 500 and Dow Hit Record Highs as U.S. Banks Excel in Q3 Earnings
Financial Stocks Drive Market Rally
The financial sector was the main contributor to Friday’s gains.
The Financial Select Sector SPDR Fund XLF rose 1.9%, marking its best session since last November and hitting a new record high.
U.S. banks reported better-than-expected Q3 earnings, boosting confidence in the sector.
JPMorgan Chase & Co. JPM saw Q3 earnings surpass estimates at $4.37 per share, leading to a 4% share increase by mid-morning trading.
Wells Fargo & Co WFC shares rose 6.2% after reporting $1.42 EPS, exceeding forecasts.
Bank of New York Mellon Corp. BK also exceeded expectations, with shares up 1.8%.
BlackRock Inc. BLK gained 3.4% following strong earnings.
Other banks like Bank of America Corp. BAC and Goldman Sachs Inc. GS also performed well, with gains between 2% and 4.8%.
Economic Data Mixed Amid Strong Earnings
Economic data showed a higher Producer Price Index and lower consumer sentiment for October.
The PPI increased to 1.8% year-over-year in September, beating expectations, while the University of Michigan’s consumer sentiment dropped to 68.9.
Even with mixed signals, investors remained optimistic due to strong bank earnings.
Top Performers on S&P 500 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 Performers on Dow Friday
| Stock | Sector | Price | 1-day Return (%) |
| JPMorgan Chase & Co. | Financials | 221.99 | 4.30% |
| The Boeing Company BA | Industrials | 150.55 | 2.68% |
| The Goldman Sachs Group, Inc. | Financials | 513.51 | 1.94% |
| Intel Corporation INTC | Information Technology | 23.63 | 1.78% |
| American Express Company AXP | Financials | 274.73 | 1.58% |
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