A strong rise in financial stocks made Wall Street optimistic on Friday, pushing the S&P 500 and Dow to new record highs.
Good earnings reports from major U.S. banks fueled market growth, despite mixed economic data earlier in the day.
The S&P 500, tracked by the SPDR S&P 500 ETF Trust (SPY), crossed 5,800 points, up 0.7% on the day, with nearly 23% gains for the year.
Meanwhile, the Dow Jones Industrial Average, tracked by the SPDR Dow Jones Industrial ETF (DIA), rose 0.8% to reach 42,780 points, breaking its previous records.
Chart: S&P 500 and Dow Reach All-Time Highs as US Banks Exceed Q3 Earnings Expectations
Financial Stocks Lead Wall Street Rally
The financial sector drove Friday’s gains.
The Financial Select Sector SPDR Fund (XLF) jumped 1.9%, marking its best day since November 2023 and reaching a new high.
U.S. banks showed 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 $4.00, and saw shares rise over 4%.
Wells Fargo & Co (WFC) shares surged 6.2% after reporting earnings of $1.42 per share, also beating estimates.
Bank of New York Mellon Corp. (BK) and BlackRock Inc. (BLK) also had positive results, with BlackRock shares climbing 3.4% after better-than-expected earnings.
Other banks like Bank of America (BAC), Citigroup (C), and Goldman Sachs (GS) also saw gains, with Morgan Stanley achieving new highs.
The success of large banks benefited regional banks, with the SPDR S&P Regional Banking ETF (KRE) up 3.5%, helping the Russell 2000 index rise 1.3%.
Mixed Economic Data Overshadowed by Strong Earnings
Friday’s economic data showed a higher Producer Price Index (PPI) than expected, while consumer sentiment dropped.
The PPI was 1.8% year-over-year in September, higher than anticipated, while consumer sentiment fell to 68.9 in October, missing forecasts.
Despite these mixed signals, investors remained optimistic due to strong bank earnings ahead of the corporate earnings season.
S&P 500s Top 5 Performers on Friday
| Stock | Sector | Price | 1-day Return (%) |
| Uber Technologies (UBER) | Industrials | $84.21 | 8.07% |
| Fastenal Company (FAST) | Industrials | $75.13 | 7.34% |
| Wells Fargo (WFC) | Financials | $60.99 | 5.61% |
| WW. Grainger (GWW) | Industrials | $1,079.38 | 5.29% |
| Bank of America (BAC) | Financials | $41.97 | 4.99% |
Dows Top 5 Performers on Friday
| Stock | Sector | Price | 1-day Return (%) |
| JPMorgan Chase (JPM) | Financials | $221.99 | 4.30% |
| The Boeing Company (BA) | Industrials | $150.55 | 2.68% |
| Goldman Sachs (GS) | 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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