S&P hits 5,800 as JP Morgan, Wells Fargo fuel financials; Dow taps fresh peak; Nasdaq up

Wall Street's S&P 500 index surpassed 5,800 for the first time, driven by strong performances from JPMorgan and Wells Fargo, despite both banks reporting a year-over-year decline in quarterly net income. The S&P 500 rose 0.5%, while the Dow reached a new record high, up 0.8%. The financial sector led gains, with bank stocks up 4%. Economic indicators showed mixed results, with the producer price index flat and consumer sentiment declining. Analysts noted inflation risks remain a concern, but the Fed may continue normalizing interest rates.

Wall Street's benchmark S&P 500 index (SP500) on Friday crossed the 5,800 level for the first time, with bank stocks leading the charge as investors pushed equity averages toward weekly gains.

The S&P 500's (SP500) landed the new milestone just before marking the second year of the stock market's bull run on Saturday. Friday's marquee winners so far were JPMorgan (JPM) and Wells Fargo (WFC), despite both lending giants reporting a Y/Y decrease in quarterly net income.

The S&P (SP500) +0.5% after starting the session slightly lower. It was last above 5,813. The blue-chip Dow (DJI) +0.8%, also reaching a new record intraday high, was last above 42,815. The Nasdaq Composite (COMP:IND) turned higher and was +0.3%.

The Financial sector on the S&P 500 (SP500) +1.8%, pacing seven other advancing groups. Information Tech and Consumer Discretionary slipped.

Bank industry stocks within Financials +4%, with JPMorgan (JPM) +5% and Wells Fargo (WFC) +5%. JPMorgan Chase (JPM), the biggest U.S. bank by assets, raised its net interest income guidance for the year. Wells Fargo (WFC), the third-largest U.S. bank by assets, topped Q3 earnings consensus as fee income helps offset headwinds on net interest income.

BlackRock (BLK), the world's largest asset manager, was +3.3%, after announcing a whopping $221B in quarterly inflows.

See how BLK, JPM and WFC performed in charts.

In a Friday equity strategy note, Wells Fargo said the S&P 500 (SP500) was on course for a weekly win on the "soft-landing narrative". The S&P 500 (SP500) was on track to log a five-week win streak for the first time since May.

Meanwhile, Tesla (TSLA) -8%, capping gains in the Nasdaq (COMP:IND). The electric vehicle giant on Thursday unveiled a prototype of its highly anticipated robotaxi, but analysts were disappointed with a lack of data and details to support the product.

On the economic front Friday, the producer price index flat lined M/M in September and core measures eased slightly. Separately, the University of Michigan's gauge of consumer sentiment slid in October.

In the bond market, the 10-year Treasury yield (US10Y) was up 1 basis point to 4.08%, paring its rise, while the 2-year yield (US2Y) was down 1 basis point to 3.96%, paring its loss.

Stocks fell Thursday, after the September consumer inflation report came in hotter than expected. Moreover, a higher-than-anticipated initial jobless claims reading also weighed on sentiment. The consumer price index (CPI) update reminded traders that inflation risks still remained a concern.

"The [CPI] report depicted some interesting trends. The inflation improvement over the past year has stalled slightly of late," Rick Rieder, CIO of global fixed income at BlackRock, said on X (formerly Twitter) on Thursday.

"A return to target core inflation does not appear to be imminent, but the Fed’s 'work is done here' in the sense that inflation is close enough to target that they can continue normalizing interest rates amid balanced objectives," Rieder said.

S&P hits 5,800 as JP Morgan, Wells Fargo fuel financials; Dow taps fresh peak; Nasdaq up

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