Financial stocks rose sharply on Friday, boosting Wall Street sentiment and driving the S&P 500 and Dow Jones to new record highs.
Major U.S. banks reported strong earnings, which helped offset mixed economic data released earlier in the day.
The S&P 500 passed 5,800 points, up 0.7% for a nearly 23% gain this year. The Dow Jones rose 0.8%, reaching 42,780 points, surpassing previous records from late September.
Chart: S&P 500 and Dow Set New Highs
Financial Stocks Lead Market Rally
The financial sector was a key contributor, with the Financial Select Sector SPDR Fund rising 1.9%, marking its strongest session since November 2023.
JPMorgan Chase reported Q3 earnings per share (EPS) of $4.37, exceeding expectations, leading to a 4% increase in its share price. Wells Fargo saw a 6.2% rise after reporting an EPS of $1.42, despite cautious guidance.
Other banks, including Bank of New York Mellon and BlackRock, also posted strong results, contributing to a 3.5% rally in regional banking stocks.
Mixed Economic Data
Economic indicators showed a higher-than-expected Producer Price Index and a weaker Michigan Consumer Sentiment report. Although inflation expectations rose slightly, investors remained optimistic because of the strong bank earnings.
Top Performers on the S&P 500
| Stock | Sector | Price | 1-day Return (%) |
|---|---|---|---|
| Uber Technologies, Inc. | Industrials | 84.21 | 8.07% |
| Fastenal Company | Industrials | 75.13 | 7.34% |
| Wells Fargo & Co | Financials | 60.99 | 5.61% |
| WW. Grainger, Inc. | Industrials | 1,079.38 | 5.29% |
| Bank of America Corporation | Financials | 41.97 | 4.99% |
Top Performers on the Dow
| 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%
Image created using AI via Midjourney.
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