On Friday, financial stocks surged, lifting optimism on Wall Street and pushing the S&P 500 and Dow Jones to new all-time highs.
Strong earnings from major U.S. banks fueled this growth, although mixed economic data was largely ignored.
The S&P 500, tracked by SPDR S&P 500 ETF SPY, rose 0.7%, surpassing 5,800 points and increasing its year-to-date return to nearly 23%.
Similarly, the Dow Jones, tracked by SPDR Dow Jones ETF DIA, climbed 0.8% to 42,780 points, breaking records set in late September.
Chart: S&P 500 and Dow Highs Driven by Bank Earnings
Financial Stocks Lead Market Gains
The financial sector was the main driver of gains. The Financial Select Sector SPDR Fund XLF gained 1.9%, its best day since November 2023, reaching a record high.
This rally followed better-than-expected earnings from U.S. banks, boosting confidence. For instance, JPMorgan Chase & Co. JPM reported Q3 earnings per share (EPS) of $4.37, above the $4.00 estimate, causing shares to rise over 4%.
Wells Fargo & Co. WFC saw a 6.2% increase in shares after EPS reached $1.42, ahead of estimates.
Bank of New York Mellon Corp. BK also delivered strong results with shares increasing by 1.8%. BlackRock Inc. BLK shares rose 3.4% after posting upbeat earnings.
Economic Data Mixed, Focus on Bank Earnings
Friday’s economic indicators included a higher-than-expected Producer Price Index (PPI) and a weaker Michigan Consumer Sentiment report. The headline PPI increased to 1.8% year-over-year, while consumer sentiment dropped to 68.9.
Despite mixed signals, investors remained optimistic due to strong bank earnings and upcoming corporate earnings.
Top S&P 500 Performers
| Stock | Sector | Price | 1-Day Return (%) |
| Uber Technologies UBER | Industrials | 84.21 | 8.07% |
| Fastenal Company 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 BAC | Financials | 41.97 | 4.99% |
Top Dow Performers
| 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 | Information Technology | 23.63 | 1.78% |
| American Express AXP | Financials | 274.73 | 1.58% |
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Image created using AI via Midjourney.
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