On Friday, a strong surge in financial stocks lifted Wall Street, pushing the S&P 500 and Dow Jones Industrial Average to new record highs.
Major U.S. banks posted solid earnings, fueling investor optimism despite mixed economic data.
The S&P 500, tracked by the SPDR S&P 500 ETF Trust SPY, surpassed 5,800 points, rising 0.7% and achieving a nearly 23% return this year.
Similarly, the Dow Jones, tracked by the SPDR Dow Jones Industrial ETF DIA, climbed 0.8% to reach 42,780 points, breaking previous records from September.
Chart: All-Time Highs for S&P 500 and Dow as U.S. Banks Exceed Q3 Earnings Forecasts
Financial Stocks Fuelling Wall Street Rally
The financial sector drove Friday’s market gains.
The Financial Select Sector SPDR Fund XLF rose 1.9%, its best day since November 2023, reaching a record high.
Reports of better-than-expected earnings from U.S. banks bolstered confidence.
JPMorgan Chase JPM reported Q3 earnings per share (EPS) of $4.37, above the $4.00 forecast, causing shares to climb over 4% in midday trading.
Wells Fargo WFC shares jumped 6.2% after reporting an EPS of $1.42, beating expectations.
Bank of New York Mellon BK and BlackRock BLK also posted strong results, with BlackRock shares rising 3.4% to a new high.
Other big banks like Bank of America BAC and Goldman Sachs GS saw gains between 2% and 4.8%.
The success of major banks lifted regional banks, with the SPDR S&P Regional Banking ETF KRE rising 3.5% and the Russell 2000 index gaining 1.3%.
Mixed Economic Data vs. Strong Earnings
Friday’s economic reports revealed a higher-than-expected Producer Price Index (PPI) and disappointing consumer sentiment data.
The PPI rose to 1.8% year-over-year in September, above the expected 1.6%. However, consumer sentiment dropped below forecasts.
According to Joanne Hsu from Surveys of Consumers, while consumers are frustrated with prices, business conditions improved to a six-month high.
Investors remained optimistic about strong bank earnings despite mixed economic signals.
Top Performers of the S&P 500 on Friday
| Stock | Sector | Price | 1-day Return (%) |
|---|---|---|---|
| Uber Technologies 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 | Financials | 41.97 | 4.99 |
Top Performers of the Dow on Friday
| Stock | Sector | Price | 1-day Return (%) |
|---|---|---|---|
| JPMorgan Chase | Financials | 221.99 | 4.30 |
| The Boeing Company 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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