Financial stocks surged on Friday, pushing the S&P 500 and Dow Jones to record highs.
Strong earnings from U.S. banks outweighed mixed economic data, boosting market confidence.
The S&P 500, tracked by SPDR S&P 500 ETF (SPY), rose 0.7% to over 5,800, with nearly 23% gains this year.
The Dow, via SPDR Dow Jones ETF (DIA), increased 0.8% to 42,780, setting new records.
Chart: S&P 500 and Dow at All-Time Highs in Q3
Financial Stocks Led the Rally
The Financial Select Sector SPDR Fund (XLF) jumped 1.9%, its best day since November 2023, driving confidence in the sector.
Major banks reported strong third-quarter earnings:
- JPMorgan had EPS of $4.37, beating expectations, and saw shares rise over 4%.
- Wells Fargo reported $1.42 EPS, up 6.2% despite cautious forecasts.
- Bank of New York Mellon and BlackRock also exceeded expectations.
Other banks like Bank of America and Citigroup rose between 2% to 4.8%.
The strength in big banks also helped regional banks, with the SPDR S&P Regional Banking ETF (KRE) up by 3.5%.
Mixed Economic Data Overshadowed
Economic indicators showed a rise in the Producer Price Index (PPI) but a drop in consumer sentiment. Despite this, investor optimism remained high due to solid bank earnings.
Top 5 Performers in the S&P 500 on Friday
| Stock | Sector | Price | 1-day Return (%) |
|---|---|---|---|
| Uber (UBER) | Industrials | $84.21 | 8.07% |
| Fastenal (FAST) | Industrials | $75.13 | 7.34% |
| Wells Fargo | Financials | $60.99 | 5.61% |
| WW. Grainger (GWW) | Industrials | $1,079.38 | 5.29% |
| Bank of America (BAC) | Financials | $41.97 | 4.99% |
Top 5 Performers in the Dow on Friday
| Stock | Sector | Price | 1-day Return (%) |
|---|---|---|---|
| JPMorgan | Financials | $221.99 | 4.30% |
| Boeing (BA) | Industrials | $150.55 | 2.68% |
| Goldman Sachs | Financials | $513.51 | 1.94% |
| Intel (INTC) | IT | $23.63 | 1.78% |
| American Express | Financials | $274.73 | 1.58% |
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