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Read MoreMarkets Wrap: Dow Jumps 400 Points to Record, S&P 500 Closes Above 5,800 as Wall Street Banks Reach Two-Year High
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.
*All data in this blog is sourced from reputable media outlets such as CNBC, Yahoo Finance, and Bloomberg. If any content infringes on copyright, please notify us for immediate removal.
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