Financial stocks soared on Friday, sparking a positive mood on Wall Street and pushing the S&P 500 and Dow Jones to new record highs.
Strong earnings from key U.S. banks contributed to this surge, overshadowing mixed economic data released that day.
The S&P 500, tracked by the SPDR S&P 500 ETF SPY, climbed over 5,800 points, up 0.7% for the day, bringing its year-to-date return to nearly 23%.
Meanwhile, the Dow, tracked by the SPDR Dow Jones ETF DIA, increased by 0.8%, reaching 42,780 points and setting new records.
Key Drivers of the Market Rally
The financial sector led Friday’s gains. The Financial Select Sector SPDR Fund XLF jumped 1.9%, achieving its best performance since November 2023 with a new record high.
Several major banks exceeded expectations for third-quarter earnings. For example, JPMorgan Chase & Co. JPM reported earnings per share (EPS) of $4.37, beating the $4.00 forecast, causing shares to rise over 4% in early trading.
Wells Fargo & Co. WFC shares surged 6.2% after announcing an EPS of $1.42, exceeding expectations despite cautious guidance. Other banks, including Bank of America BAC and Citigroup C, also saw stock increase between 2% and 4.8%.
Economic Data Released
Friday’s economic updates showed mixed results, with the Producer Price Index (PPI) higher than expected but consumer sentiment lower than forecasted.
Despite this, investors remained optimistic, focusing on strong bank performance as a sign of resilience and looking forward to the upcoming earnings season.
S&P 500’s Top Performers
| 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% |
Dow’s Top Performers
| 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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