Traders were active on the New York Stock Exchange as the S&P 500 and Dow Jones Industrial Average reached new heights on Friday, buoyed by a strong start to the third-quarter earnings season led by major banks. The S&P 500 climbed 0.6%, the Dow advanced by 400 points or 0.9%, while the Nasdaq Composite gained 0.3%, despite Tesla’s shares dropping 7% due to a lackluster robotaxi presentation. The Nasdaq remains less than 2% away from its record high.
Craig Sterling, head of U.S. equity research at Amundi US, pointed out that a broadening market positively impacted trading. The major indexes are on track for weekly gains, with the S&P 500 up 1.1% for a fifth consecutive positive week, and both the Dow and Nasdaq seeing significant gains.
Solid earnings reports from banking giants bolstered investor confidence. JPMorgan Chase’s stock rose 5% after exceeding profit and revenue forecasts, while Wells Fargo increased nearly 6% despite a dip in net interest income. Kim Forrest, chief investment officer at Bokeh Capital Partners, noted that investors have recognized banks’ ability to generate money regardless of economic conditions, diminishing net interest income’s traditional role as an indicator of a bank’s health.
Wall Street often views banks as economic indicators, influencing the broader earnings season’s tone. However, Forrest emphasized the challenges banks face in providing forward guidance, which frequently affects post-earnings stock performance.
In addition to earnings reports, new data eased concerns over persistent inflation. The producer price index, a key inflation measure, stayed flat in September, contrary to a projected 0.1% rise, alleviating worries sparked by a higher-than-expected increase in the consumer price index. David Russell from TradeStation noted the decreasing impact of these numbers as inflation moderates.
Market expectations indicate an 86% probability that the Federal Reserve will reduce interest rates by a quarter point in November, as suggested by CME’s FedWatch Tool. Policymakers will consider additional data to guide their decisions on rates.
Original Story https://www.cnbc.com/2024/10/10/stock-market-today-live-updates.html
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