A strong rise in financial stocks increased optimism on Wall Street, with the S&P 500 and Dow Jones reaching new record highs on Friday.
Positive earnings from major U.S. banks boosted the market, even as mixed economic data was released earlier in the day.
The S&P 500, monitored by the SPDR S&P 500 ETF Trust (SPY), surpassed 5,800, climbing 0.7% and nearly 23% year-to-date.
The Dow Jones Industrial Average, tracked by the SPDR Dow Jones Industrial ETF (DIA), increased 0.8% to 42,780 points, breaking records from late September.
Chart: S&P 500, Dow Reach All-Time Highs as US Banks Exceed Q3 Earnings Expectations
Financial Stocks Lead Wall Street Gains
The financial sector was the key driver of the market’s rise, with the Financial Select Sector SPDR Fund (XLF) up 1.9%, marking its best day since November 2023.
JPMorgan Chase reported strong Q3 earnings of $4.37 per share, exceeding expectations, leading to a 4% share increase during New York’s mid-morning trading.
Wells Fargo’s shares surged 6.2% after it posted an EPS of $1.42, and Bank of New York Mellon also exceeded expectations with shares rising 1.8%.
Other major banks, including Bank of America, Citigroup, Goldman Sachs, and Morgan Stanley, saw share growth between 2% and 4.8%, with Morgan Stanley reaching new highs.
Mixed Economic Data vs. Strong Earnings
Friday’s economic data showed a higher-than-expected Producer Price Index (PPI) and a disappointing Michigan Consumer Sentiment index. PPI rose to 1.8%, above expectations, while consumer sentiment fell to 68.9, missing forecasts.
Despite concerns about inflation and consumer sentiment, investors remained focused on positive bank earnings and looked forward to the corporate earnings season.
S&P 500 Top 5 Performers
| Stock | Sector | Price | 1-day Return (%) |
|---|---|---|---|
| Uber Technologies (UBER) | Industrials | $84.21 | 8.07% |
| Fastenal (FAST) | Industrials | $75.13 | 7.34% |
| Wells Fargo (WFC) | Financials | $60.99 | 5.61% |
| WW. Grainger (GWW) | Industrials | $1,079.38 | 5.29% |
| Bank of America (BAC) | Financials | $41.97 | 4.99% |
Dow’s Top 5 Performers
| Stock | Sector | Price | 1-day Return (%) |
|---|---|---|---|
| JPMorgan Chase | Financials | $221.99 | 4.30% |
| Boeing (BA) | Industrials | $150.55 | 2.68% |
| Goldman Sachs | Financials | $513.51 | 1.94% |
| Intel (INTC) | Information Technology | $23.63 | 1.78% |
| American Express (AXP) | Financials | $274.73 | 1.58% |
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