On Friday, financial stocks rallied, boosting confidence on Wall Street and leading the S&P 500 and Dow Jones to new record highs.
Strong earnings from major U.S. banks outweighed mixed economic data released earlier in the day.
The S&P 500 surpassed 5,800 points, gaining 0.7% and achieving nearly 23% growth this year.
The Dow Jones rose 0.8%, reaching 42,780 points, setting a new record.
Chart: S&P 500 and Dow Hits All-Time Highs
Financial Stocks Lead the Market Surge
The financial sector was key to Friday’s market gains.
The Financial Select Sector SPDR Fund rose 1.9%, its largest increase since November 2023, hitting a new high.
Top banks delivered better-than-expected Q3 earnings, enhancing confidence in the sector.
JPMorgan Chase saw Q3 earnings per share (EPS) at $4.37, surpassing expectations, with shares rising over 4%.
Wells Fargo’s shares shot up 6.2% after reporting an EPS of $1.42, despite cautious future income guidance.
Bank of New York Mellon’s shares climbed by 1.8%, and BlackRock gained 3.4% following strong earnings.
Other major banks like Bank of America and Goldman Sachs rose between 2% and 4.8%.
The strength in large banks also benefited regional banks, with the SPDR S&P Regional Banking ETF climbing 3.5%.
Economic Data Mixed but Earnings Strong
Economic data showed a higher Producer Price Index (PPI) and lower consumer sentiment for October.
PPI rose to 1.8% year-over-year, while the University of Michigan’s consumer sentiment index fell to 68.9 in October.
Despite these mixed signals, investors remained optimistic due to strong bank earnings.
S&P 500’s Top Performers
| Stock | Sector | Price | 1-day Return (%) |
|---|---|---|---|
| Uber Technologies, Inc. | Industrials | 84.21 | 8.07% |
| Fastenal Company | Industrials | 75.13 | 7.34% |
| Wells Fargo & Company | Financials | 60.99 | 5.61% |
| WW. Grainger, Inc. | 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 | Industrials | 150.55 | 2.68% |
| The Goldman Sachs Group, Inc. | Financials | 513.51 | 1.94% |
| Intel Corporation | Information Technology | 23.63 | 1.78% |
| American Express Company | Financials | 274.73 | 1.58% |
Read Next: JPMorgan Chase Q3 Earnings: Investment Banking Revenue Soars 29%
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