Financial stocks surged on Friday, boosting optimism on Wall Street and pushing the S&P 500 and Dow Jones to record highs.
Major U.S. banks reported strong earnings, overshadowing mixed economic data released that day.
The S&P 500, represented by the SPDR S&P 500 ETF Trust SPY, climbed over 5,800 points, increasing by 0.7% and bringing its year-to-date gain to almost 23%.
The Dow, tracked by the SPDR Dow Jones Industrial ETF DIA, rose 0.8% to 42,780 points, breaking previous records.
Wall Street Rallies Driven by Financial Stocks
Financial stocks led the market gains. The Financial Select Sector SPDR Fund XLF jumped 1.9%, marking its best performance since November 2023.
Strong Q3 earnings from U.S. banks boosted confidence. For instance, JPMorgan Chase & Co. JPM reported earnings of $4.37 per share, beating the $4.00 estimate, and its stock rose over 4%.
Wells Fargo & Co WFC shares soared 6.2% after posting $1.42 EPS, surpassing expectations.
Other large banks also saw gains: Bank of America BAC, Goldman Sachs GS, and Morgan Stanley MS each rose between 2% to 4.8%. Morgan Stanley reached a new all-time high.
Regional banks benefited too, with the SPDR S&P Regional Banking ETF KRE increasing by 3.5%.
Economic Data Mixed, But Strong Earnings Prevail
Economic data showed a higher-than-expected Producer Price Index (PPI) and lower consumer sentiment. The PPI rose to 1.8% year-on-year in September, above expectations, while the Michigan Consumer Sentiment index fell to 68.9.
Despite these mixed signals, investors remained focused on the strong earnings from banks and were optimistic about future corporate results.
Top Performers on S&P 500
| Stock | Sector | Price | 1-day Return (%) |
| Uber 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 | Financials | 41.97 | 4.99% |
Top Performers on Dow
| Stock | Sector | Price | 1-day Return (%) |
| JPMorgan Chase | Financials | 221.99 | 4.30% |
| Boeing BA | Industrials | 150.55 | 2.68% |
| Goldman Sachs | 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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