“S&P 500, Dow Jones Reach New Highs After Strong Earnings”

Financial stocks surged on Friday, boosting optimism on Wall Street and pushing the S&P 500 and Dow Jones to new highs.

Strong earnings from major U.S. banks helped offset mixed economic data released earlier in the day.

The S&P 500, tracked by SPDR S&P 500 ETF Trust (SPY), rose 0.7% to surpass 5,800 points, achieving nearly 23% returns this year.

The Dow Jones, tracked by SPDR Dow Jones Industrial ETF (DIA), increased 0.8% to reach 42,780 points, breaking records from late September.

Chart: S&P 500 and Dow Reach All-Time Highs Following Strong Bank Earnings

Financial Stocks Lead Market Rally

The financial sector drove the market higher, with Financial Select Sector SPDR Fund (XLF) rising 1.9%, its best day since November 2023.

U.S. banks reported better-than-expected Q3 earnings, boosting confidence. JPMorgan Chase (JPM) earned $4.37 per share, surpassing the $4.00 estimate, with shares rising over 4% in early trading.

Wells Fargo (WFC) saw shares increase 6.2% after reporting an EPS of $1.42, while Bank of New York Mellon (BK) and BlackRock (BLK) also posted strong results.

Other banks, including Bank of America (BAC) and Goldman Sachs (GS), experienced gains between 2% and 4.8%.

The rally extended to regional banks, with SPDR S&P Regional Banking ETF (KRE) rising 3.5% and the Russell 2000 index gaining 1.3%.

Mixed Economic Data Overshadowed by Earnings

Economic data showed a higher-than-expected Producer Price Index (PPI) and a lower Michigan Consumer Sentiment in October. The PPI rose to 1.8% year-over-year, while consumer sentiment fell to 68.9.

Despite these mixed signals, investors remained positive, focusing on the strong bank earnings and upcoming earnings season.

S&P 500’s Top 5 Performers on Friday

Dow’s Top 5 Performers on Friday

Next Up: JPMorgan Chase Q3 Earnings: Investment Banking Revenue Soars 29%

Image created with AI via Midjourney.