S&P 500 and Dow Jones set record highs as financial stocks rise.

Strong gains in financial stocks lifted Wall Street on Friday, pushing both the S&P 500 and Dow Jones to record highs.

Major U.S. banks reported solid earnings, outweighing mixed economic data released earlier.

The S&P 500, tracked by the SPDR S&P 500 ETF Trust SPY, surpassed 5,800 points, rising 0.7% and bringing year-to-date gains to nearly 23%.

Meanwhile, the Dow Jones, tracked by the SPDR Dow Jones Industrial ETF DIA, increased 0.8%, reaching 42,780 points and breaking previous records.

Chart: S&P 500 and Dow Set All-Time Highs as Banks Exceed Q3 Earnings Forecasts

Financial Stocks Power Wall Street Surge

The financial sector was the main contributor to Friday’s market rise.

The Financial Select Sector SPDR Fund XLF jumped 1.9%, its best day since November 2023, reaching a new record.

U.S. banks, including JPMorgan Chase JPM and Wells Fargo WFC, reported better-than-expected earnings, boosting confidence. JPMorgan’s EPS was $4.37, surpassing the $4.00 forecast, while Wells Fargo’s shares increased by 6.2% after posting an EPS of $1.42.

BlackRock BLK also saw a 3.4% rise after positive earnings, hitting a record high.

Mixed Economic Data Overlooked

Economic data showed a higher-than-expected Producer Price Index (PPI) and a lower-than-expected consumer sentiment report.

The PPI rose to 1.8% year-over-year, while consumer sentiment fell to 68.9 in October.

Despite these mixed signals, investors remained optimistic about strong bank earnings going into the corporate earnings season.

S&P 500’s Top 5 Performers on Friday

Dow’s Top 5 Performers on Friday

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Image created using AI via Midjourney.