On Friday, a surge in financial stocks lifted Wall Street, with the S&P 500 and Dow Jones reaching new record highs.
Strong earnings from major U.S. banks boosted the market, even as mixed economic data was released earlier.
The S&P 500, tracked by the SPDR S&P 500 ETF Trust (SPY), rose 0.7% to surpass 5,800 points, marking a nearly 23% increase this year.
Meanwhile, the Dow Jones Industrial Average, tracked by the SPDR Dow Jones Industrial ETF (DIA), climbed 0.8% to reach 42,780 points, breaking its previous September record.
Financial Stocks Lead Market Gains
The financial sector drove the markets rise, with the Financial Select Sector SPDR Fund (XLF) gaining 1.9%, its best day since November 2023.
U.S. banks reported better-than-expected third-quarter earnings, boosting confidence in the sector. Notably, JPMorgan Chase‘s earnings per share (EPS) of $4.37 exceeded estimates, leading to a 4% share price increase. Wells Fargo shares surged 6.2% after announcing an EPS of $1.42.
Other major banks like BlackRock and Bank of America also saw significant gains of 3.4% and nearly 5%, respectively.
Mixed Economic Data
Economic reports showed a higher-than-expected Producer Price Index (PPI) but weaker consumer sentiment. September’s PPI was up at 1.8%, above estimates, while consumer sentiment fell to 68.9 in October.
Despite these signals, investors remained focused on strong bank earnings as they await the corporate earnings season.
Top Performers of the Day
S&P 500’s Top 5 Performers
| Stock | Sector | Price | 1-day Return (%) |
|---|---|---|---|
| Uber Technologies | Industrials | $84.21 | 8.07% |
| Fastenal | Industrials | $75.13 | 7.34% |
| Wells Fargo | Financials | $60.99 | 5.61% |
| WW. Grainger | Industrials | $1,079.38 | 5.29% |
| Bank of America | Financials | $41.97 | 4.99% |
Dow’s Top 5 Performers
| Stock | Sector | Price | 1-day Return (%) |
|---|---|---|---|
| JPMorgan Chase | Financials | $221.99 | 4.30% |
| Boeing | Industrials | $150.55 | 2.68% |
| Goldman Sachs | Financials | $513.51 | 1.94% |
| Intel | Information Technology | $23.63 | 1.78% |
| American Express | Financials | $274.73 | 1.58% |
Next: JPMorgan Chase Q3 Earnings: Investment Banking Revenue Soars 29%
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