Financial stocks surged on Friday, lifting Wall Street’s confidence and pushing the S&P 500 and Dow Jones to new record highs.
Strong earnings from major U.S. banks overshadowed mixed economic data.
The S&P 500, tracked by the SPDR S&P 500 ETF Trust SPY, climbed 0.7% to over 5,800 points, with nearly 23% year-to-date gains.
The Dow, followed by the SPDR Dow Jones Industrial ETF DIA, rose 0.8% to hit 42,780 points, breaking its previous record.
Chart: S&P 500, Dow Reach All-Time Highs After Bank Earnings
Financial Stocks Lead Wall Street Rally
The financial sector led the gains, with the Financial Select Sector SPDR Fund XLF rising 1.9%, the best day since November 2023.
Major banks reported better-than-expected earnings, adding confidence in the sector.
JPMorgan Chase JPM declared Q3 earnings per share (EPS) of $4.37, exceeding projections, sending shares up over 4%.
Wells Fargo WFC shares jumped 6.2% after posting an EPS of $1.42.
Bank of New York Mellon BK and BlackRock BLK also reported strong results, with BlackRock shares hitting a record high.
Other banks, including Bank of America BAC and Citi C, saw gains between 2% and 4.8%.
The positive trend extended to regional banks, with the SPDR S&P Regional Banking ETF KRE up 3.5%, boosting the Russell 2000 index by 1.3%.
Mixed Economic Data Impact
Economic data released showed a higher-than-expected Producer Price Index (PPI) and a weaker Michigan Consumer Sentiment report for October.
PPI rose by 1.8% year-over-year in September, beating expectations of 1.6%. Meanwhile, the University of Michigans consumer sentiment index fell to 68.9.
Despite the mixed signals, investors focused on the strong bank earnings, remaining optimistic about upcoming corporate results.
Top 5 S&P 500 Performers 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% |
| Grainger GWW | Industrials | 1,079.38 | 5.29% |
| Bank of America | Financials | 41.97 | 4.99% |
Top 5 Dow Performers on Friday
| 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 | Technology | 23.63 | 1.78% |
| American Express AXP | Financials | 274.73 | 1.58% |
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