On Friday, financial stocks surged, boosting optimism on Wall Street and leading the S&P 500 and Dow Jones Industrial Average to new all-time highs.
Strong earnings from major U.S. banks helped drive the market higher, despite mixed economic data released earlier.
The S&P 500, tracked by the SPDR S&P 500 ETF Trust SPY, climbed over 5,800 points, up 0.7% for the day and nearly 23% for the year.
Meanwhile, the Dow Jones, tracked by the SPDR Dow Jones Industrial ETF DIA, increased 0.8% to 42,780 points, setting a new record.
Chart: S&P 500 and Dow Hit Record Highs After Strong Bank Earnings
Financial Stocks Propel Wall Street’s Gains
The financial sector led Friday’s market rally.
The Financial Select Sector SPDR Fund XLF rose 1.9%, marking its best day since November 2023.
U.S. banks reported better-than-expected Q3 earnings, boosting confidence in the sector.
JPMorgan Chase & Co. JPM reported Q3 earnings of $4.37 per share, above the expected $4, leading to a 4% share price jump.
Wells Fargo & Co. WFC shares increased 6.2% after beating EPS expectations.
Bank of New York Mellon Corp. BK and BlackRock Inc. BLK also saw share price increases following positive earnings.
Mixed Economic Data Overshadowed by Earnings Reports
Economic data released Friday showed a higher-than-expected Producer Price Index (PPI) and a weaker Michigan Consumer Sentiment report.
September’s PPI was 1.8%, up from 1.6% expected, while consumer sentiment fell to 68.9, lower than forecasts.
Even with mixed signals, investors were buoyed by the strong bank earnings and looked forward to the earnings season.
S&P 500’s Top Performers on Friday
| Stock | Sector | Price | 1-day Return (%) |
| Uber Technologies, Inc. UBER | Industrials | 84.21 | 8.07% |
| Fastenal Company FAST | Industrials | 75.13 | 7.34% |
| Wells Fargo & Company | Financials | 60.99 | 5.61% |
| WW. Grainger, Inc. GWW | Industrials | 1,079.38 | 5.29% |
| Bank of America Corporation | Financials | 41.97 | 4.99% |
Dow’s Top Performers on Friday
| Stock | Sector | Price | 1-day Return (%) |
| JPMorgan Chase & Co. | Financials | 221.99 | 4.30% |
| Boeing Company BA | Industrials | 150.55 | 2.68% |
| Goldman Sachs Group, Inc. | Financials | 513.51 | 1.94% |
| Intel Corporation INTC | Information Technology | 23.63 | 1.78% |
| American Express Company AXP | Financials | 274.73 | 1.58% |
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