Financial stocks surged on Friday, boosting the S&P 500 and Dow Jones to new record highs. Strong earnings from major U.S. banks helped mitigate mixed economic data.
The S&P 500, via the SPDR S&P 500 ETF TrustSPY, rose 0.7% to over 5,800 points, with year-to-date gains approaching 23%. Meanwhile, the Dow, tracked by the SPDR Dow Jones Industrial ETFDIA, increased 0.8% to 42,780 points, surpassing previous records.
Market Rally Fueled by Financial Sector
Friday’s gains were driven mainly by the financial sector, with the Financial Select Sector SPDR FundXLF climbing 1.9%, its best performance since November 2023, following strong Q3 earnings from U.S. banks.
JPMorgan ChaseJPM reported Q3 earnings per share (EPS) of $4.37, surpassing the expected $4.00, and saw shares rise over 4%. Wells FargoWFC saw a 6.2% jump after posting an EPS of $1.42. BlackRockBLK‘s EPS and revenue also exceeded estimates, leading to a 3.4% increase in shares.
Mixed Economic Data
Economic reports included a higher-than-expected Producer Price Index (PPI), which grew 1.8% year-over-year, and a weaker Michigan Consumer Sentiment, falling to 68.9 in October. Despite these mixed signals, strong bank earnings bolstered investor optimism ahead of 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 CompanyFAST | Industrials | 75.13 | 7.34% |
| Wells Fargo & Company | Financials | 60.99 | 5.61% |
| 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 CompanyBA | Industrials | 150.55 | 2.68% |
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