U.S. stock markets experienced a significant boost on Friday, with the S&P 500 and Dow Jones Industrial Average reaching record highs. This rally marked a notable five-week winning streak for all three major indices.
The S&P 500 closed at an all-time high of 5,815.03, representing an increase of 0.61% for the day, while the Dow Jones Industrial Average climbed 0.97%, finishing at 42,863.86. This session also marked the S&P 500’s 45th record closing high of the year, surpassing the 5,800 milestone for the first time.
The surge in stock prices was largely attributed to strong third-quarter earnings reports from major banks JPMorgan and Wells Fargo. Both institutions showcased robust performance, alleviating concerns about a potential slowdown in consumer spending. JPMorgan’s CEO Jamie Dimon lauded the bank’s results but cautioned that geopolitical conditions remain “treacherous and getting worse,” reflecting ongoing investor worries about rising geopolitical risks.
Adding to the positive sentiment in the markets was a flat reading for September’s Producer Price Index (PPI), which helped to ease inflation concerns. The PPI showed no month-over-month change, falling short of economists’ predictions for a 0.1% increase. Core PPI rose by 0.1%, lower than the expected 0.2% increase. David Russell, a strategist at TradeStation, noted, “CPI might have seemed hot, but PPI was not. Overall, these numbers are getting less impactful as inflation moderates.”
Investors are now turning their attention to the upcoming retail sales data, set to be released on October 17. Analysts at Bank of America anticipate a 0.8% increase in September retail sales, significantly higher than the consensus estimate of 0.2% growth.
As of the market’s close at 4:00 p.m. on Friday, the standings for U.S. indices were as follows:
S&P 500: 5,815.03, up 0.61%
Dow Jones Industrial Average: 42,863.86, up 0.97% (+409.74 points)
Nasdaq Composite: 18,342.94, up 0.33%
Tesla’s stock plummeted by 10% following a disappointing response to the company’s robotaxi event. Meanwhile, Morgan Stanley reported that Nvidia’s next-generation Blackwell chips are sold out for the next 12 months. Additionally, a Chinese automaker has taken over Russian manufacturing plants previously abandoned by Volkswagen and Mercedes, as Russia’s ruble hit its lowest level in a year against both the dollar and yuan. Goldman Sachs also identified several stocks positioned for growth in the next wave of AI investment.
In the commodities market, West Texas Intermediate crude oil fell 0.45% to $75.51 per barrel, while Brent crude, the international benchmark, decreased by 0.55% to $78.96 per barrel. Gold prices rose by 1.26% to $2,672.60 per ounce. The yield on the 10-year Treasury note increased by one basis point to 4.083%, and Bitcoin saw a 4.45% uptick, reaching $62,963.
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