A surge in financial stocks lifted investor confidence on Wall Street Friday, with the S&P 500 and Dow Jones reaching new record highs.
Strong earnings from major U.S. banks, despite mixed economic data, boosted the broader market.
The S&P 500, tracked by the SPDR S&P 500 ETF Trust (SPY), rose 0.7% to surpass 5,800 points, bringing its year-to-date return to nearly 23%.
The Dow Jones Industrial Average, tracked by the SPDR Dow Jones Industrial ETF (DIA), climbed 0.8% to 42,780 points, breaking records set in late September.
Chart: S&P 500 and Dow at All-Time Highs as U.S. Banks Exceed Q3 Earnings Estimates
Financial Stocks Power Wall Street Rally
Financial stocks drove the market gains, with the Financial Select Sector SPDR Fund (XLF) jumping 1.9%, marking its best performance since November 2023.
U.S. banks reported better-than-expected third-quarter results, boosting confidence. Notable performances included:
- JPMorgan Chase: Q3 earnings per share (EPS) of $4.37, topping expectations. Shares rose over 4%.
- Wells Fargo: EPS of $1.42, beating estimates, shares up 6.2%.
- Bank of New York Mellon: Shares rose 1.8% with strong results.
- BlackRock: Gained 3.4% after surpassing earnings expectations.
Other banks like Bank of America, Citigroup, Goldman Sachs, and Morgan Stanley also saw gains of up to 4.8%.
The SPDR S&P Regional Banking ETF (KRE) was up 3.5%, boosting the small-cap Russell 2000 index by 1.3%.
Mixed Economic Data Overshadowed by Strong Earnings
Economic data showed a higher-than-expected Producer Price Index and a disappointing Michigan Consumer Sentiment report for October.
Despite these mixed signals, strong bank performances kept investor optimism high for the upcoming 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 (FAST) | Industrials | $75.13 | 7.34% |
| Wells Fargo | 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 | Financials | $221.99 | 4.30% |
| The Boeing Company (BA) | Industrials | $150.55 | 2.68% |
| The Goldman Sachs Group | 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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