Banks Propel S&P 500 and Dow to New Heights Despite Tesla Setback

The S&P 500 and Dow reached record highs due to strong third-quarter results from major banks, with JPMorgan and Wells Fargo leading the charge. Tesla's stock fell after a robotaxi unveiling, impacting Nasdaq gains. Speculation continues on a Federal Reserve rate cut in November amid mixed economic data.

The S&P 500 and Dow surged to new record highs on Friday, thanks to impressive third-quarter performances from major banks. JPMorgan's shares rose 5% as it surpassed profit expectations and updated its interest income forecast. Likewise, Wells Fargo's 5.7% increase followed its own positive earnings report.

Tesla's 7.8% decline, however, somewhat tempered gains on the Nasdaq. This slide came after the company revealed its much-anticipated robotaxi without clarifying production timelines or regulatory solutions. Meanwhile, U.S. Labor Department data showed no change in the Producer Price Index, contradicting a minor increase predicted by economists.

Investors continue to bet on a possible 25-basis-point interest rate cut by the Federal Reserve in November. This speculation arises in light of mixed indicators, including slightly higher-than-expected Consumer Price Index data and elevated weekly jobless claims. Michelle Bowman's speech later today may offer further insights on the Fed's stance.

(With inputs from agencies.)