Markets Wrap: Dow Jumps 400 Points to Record, S&P 500 Closes Above 5,800 as Wall Street Banks Reach Two-Year High

Stock Market Wrap

Markets Wrap: Dow Jumps 400 Points to Record, S&P 500 Closes Above 5,800 as Wall Street Banks Reach Two-Year High

Oct 11, 2024

Market Overview:

Stocks surged on Friday as the S&P 500 and Dow Jones Industrial Average reached new highs, driven by a strong start to the third-quarter earnings season from major banks. The S&P 500 climbed 0.7%, the Dow gained 440 points (1%), and the Nasdaq rose 0.45%, leaving it less than 2% below its all-time high.

Investor optimism grew as banks exceeded expectations. JPMorgan Chase rose 4.4% after reporting higher-than-expected profits and revenue, while Wells Fargo increased 5.6% despite an 11% decline in net interest income. Analysts suggested this signals resilience in the banking sector, contributing to broader market gains.

Economic data also played a role in the positive sentiment, with a cooler-than-expected September producer price index easing concerns about persistent inflation. This, combined with moderate consumer price index growth, hinted that the Federal Reserve could achieve its 2% inflation target while keeping interest rates steady.

The Federal Reserve’s rate outlook continues to dominate market focus, with futures now indicating an 86% probability of a quarter-point rate cut in November. Investors remain cautious about future data releases, which could further impact rate expectations.

Corporate News:

JPMorgan Chase & Co.: Shares jumped 4.4% following a strong earnings report, with profits and revenues surpassing expectations.
Tesla Inc.: Shares dropped 8.8% following a disappointing robotaxi event that failed to meet investor expectations.
Wells Fargo & Co.: The stock surged 5.6% as the bank posted solid profits despite a decline in net interest income.
Tesla Inc.: Tesla shares dropped 8.8% after the company’s robotaxi event lacked the excitement investors anticipated.
BlackRock Inc.: The world’s largest asset manager hit an all-time high of $11.5 trillion in assets under management, boosted by a record $221 billion in new client funds.
Bank of New York Mellon Corp.: Third-quarter profits exceeded estimates, thanks to a rise in asset values that drove a 5% increase in fee revenue.
BP Plc: BP expects its net debt to increase due to lower refining margins and delays in asset sales.
Boeing Co.: Boeing is facing increasing pressure from its labor strike, which has entered its fourth week, as the company files charges of unfair labor practices against the union.

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