In Friday's trading session, the Dow Jones Industrial Average soared nearly 300 points, or 0.7%, while the S&P 500 reached a new peak, marking its fifth consecutive week of gains. These gains are linked to strong third-quarter earnings from major banks, which have eased concerns about inflation.
The S&P 500 itself rose by 0.5%, hitting a record close, reflecting a broad market rally. We see investors welcoming a mix of economic indicators, mostly skewing towards the positive.
JPMorgan Chase and Wells Fargo really led the charge, surpassing earnings expectations and pushing the Dow even higher. JPMorgan's shares climbed by 5% after the bank announced earnings that exceeded both profit and revenue estimates. In a similar vein, Wells Fargo's shares surged nearly 6%, despite an 11% fall in net interest income, a key health metric for banks. It's clear that investors are looking beyond traditional indicators to gauge a bank's performance.
While the Nasdaq Composite lagged a bit, it still managed to tack on an additional 0.3% to its value. However, Tesla's shares took a 7% hit following a less-than-impressive reveal of its robotaxi technology. The tech-heavy index is now just under 2% away from its highest-ever mark, showcasing a tech sector that's pushing forward, albeit with some bumps along the way.
