On Friday, the Dow Jones Industrial Average and the S&P 500 both hit record highs, with the latter closing above 5,800 for the first time, as major U.S. banks launched the earnings season.
The Dow (^DJI) climbed nearly 1%, driven by a surge in JPMorgan Chase (JPM) shares. The S&P 500 (^GSPC) rose 0.6%, while the tech-heavy Nasdaq Composite (^IXIC) added approximately 0.3%, recovering from slight losses on Thursday.
All three major indexes concluded the first full trading week of October with gains exceeding 1%. Investors scrutinized quarterly earnings from prominent Wall Street banks, which typically mark the beginning of the earnings season. A key area of focus is the potential influence of the Federal Reserve’s shift toward interest rate cuts on lending margins and profits.
Simultaneously, market participants assessed the potential implications of upcoming inflation data and unchanged wholesale inflation on the Federal Reserve’s policy stance. The latest consumer inflation figures did not provide a clear signal regarding the Fed’s next steps on interest rate adjustments.
Financial stocks (XLF) outperformed on Friday, buoyed by stronger-than-expected third-quarter results from JPMorgan Chase and Wells Fargo (WFC). In contrast, Consumer Discretionary (XLY) stocks finished slightly lower, impacted by declines in shares of electric vehicle leader Tesla (TSLA), which unveiled a highly anticipated driverless robotaxi.
Looking ahead, earnings season will remain in full swing next week, with reports expected from companies including Citigroup (C), United Airlines (UAL), semiconductor equipment maker ASML (ASML), Netflix (NFLX), and American Express (AXP).
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