Strong bank earnings carry S&P 500 to new record high

Stellar quarterly reports that testified to the health of Corporate America pushed the S&P 500 up 0.6% to a fresh-all time high and its first close above 5,800.

The tech-heavy Nasdaq 100 rose a more modest 0.2% while the Russell 2000 handily outperformed, jumping 2.1%.

The market rally was broad-based, with more than six S&P 500 constituents up for every one that was down, but led by financials.

JPMorgan and Wells Fargo’s earnings reports unofficially kicked off the third-quarter reporting season, with both posting better than expected results that sent shares soaring 4.4% and 5.6%, respectively. Bank of America, which reports next week, also rose 5%. The Invesco KBW Bank ETF surged 3%, its biggest daily advance of 2024.

Separately, strong financial market performance and record inflows propelled BlackRock’s assets under management up to $11.5 trillion in the third quarter, sending shares up 3.6% on Friday.

Industrials weren’t too far behind financials, as bellwether Fastenal gained 9.8% after the company delivered solid quarterly results despite Hurricane Helene weighing on activity in September.

Consumer discretionary was the lone sector to go negative on the day. Shares of Tesla, the worst performing S&P 500 constituent, slumped 8.8% after an underwhelming robotaxi event cast doubt on the company’s standing in autonomous vehicles. Musk’s pain was Uber and Lyft’s gain, as shares of those ride-hailing firms rose 10.8% and 9.6%, respectively.