Strong financial stocks lifted Wall Street’s mood on Friday, setting new records for the S&P 500 and Dow Jones Industrial Average.
Better-than-expected earnings from major U.S. banks contributed to this market growth, as investors overlooked mixed economic data.
The S&P 500, tracked by the SPDR S&P 500 ETF Trust SPY, climbed over 5,800 points, up 0.7%, with nearly a 23% gain this year. Meanwhile, the Dow Jones, through the SPDR Dow Jones Industrial ETF DIA, rose 0.8% to reach 42,780 points, breaking previous records.
Chart: All-Time Highs for S&P 500 and Dow
Financial Stocks Power Rally
The financial sector was the key driver of the market’s rise on Friday. The Financial Select Sector SPDR Fund XLF surged 1.9%, marking a new record. This followed strong earnings reports from U.S. banks, boosting confidence in the sector.
JPMorgan Chase JPM reported Q3 earnings per share (EPS) of $4.37, exceeding estimates, causing its stock to jump over 4%. Wells Fargo WFC shares rose 6.2% after beating EPS expectations, while BlackRock BLK gained 3.4% on better earnings.
Other major banks, including Bank of America BAC, Citigroup C, and Morgan Stanley MS, also saw gains of up to 4.8%. The SPDR S&P Regional Banking ETF KRE increased 3.5%. This positive momentum extended to the Russell 2000 index, which rose 1.3%.
Economic Data Mixed but overshadowed
Economic reports included a higher-than-expected Producer Price Index (PPI) and a disappointing University of Michigan Consumer Sentiment index for October. Despite these signals, investors stayed focused on strong bank earnings and are optimistic about the upcoming earnings season.
Top 5 Performers on S&P 500
| 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 5 Performers on Dow
| 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 | Tech | 23.63 | 1.78% |
| American Express AXP | Financials | 274.73 | 1.58% |
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