NEW YORK, Oct. 11 (Xinhua) -- U.S. stocks ended higher on Friday, as strong third-quarter earnings from major banks eased concerns about inflation.
The Dow Jones Industrial Average rose 409.74 points, or 0.97 percent, to 42,863.86. The S&P 500 added 34.98 points, or 0.61 percent, to 5,815.03. The Nasdaq Composite Index increased 60.89 points, or 0.33 percent, to 18,342.94. Both Dow and S&P 500 refreshed their record highs on Friday.
Nine of the 11 primary S&P 500 sectors ended in green, with financials and industrials leading the gainers by going up 1.95 percent and 1.79 percent, respectively. Meanwhile, consumer discretionary and technology led the laggards by dropping 0.41 percent and 0.03 percent, respectively.
Equity traders concerned that the Federal Reserve's rate cuts would erode bank profits were relieved after JPMorgan Chase & Co. reported on Friday a surprise rise in net interest income, easing those fears.
Wells Fargo & Co. saw a decline in its net interest income, but the bank predicted a less severe drop in the final quarter of the year.
The shares of JPMorgan and Wells Fargo gained 4.44 percent and 5.59 percent, respectively, propelling the KBW Bank index to its highest level since April 2022. The move signaled renewed confidence in the banking sector's resilience.
"We'd some good earnings reports from some leading financial companies. That's a good start to earnings season," said Evan Brown, portfolio manager and head of multi-asset strategy with UBS Asset Management.
Adding that it boded well for the economy, Brown said, "When financials do well, this is what a soft landing looks like. It's a positive overall sign for the economy and sets a positive tone for earnings releases in other industries in the next few weeks."
Additionally, the U.S. Department of Labor reported that the producer price index (PPI) for final demand remained flat in September, showing no monthly change. Meanwhile, the U.S. consumer confidence took a dip, as the University of Michigan's consumer sentiment index fell to 68.9 in October, down from 70.1 the previous month, reflecting growing concerns about the economic outlook.
