The benchmark S&P 500 index has closed above 5,800 for the first time and notched its 45th all-time high this year.
The blue-chip Dow Jones Industrial Average also closed at a record high on October 11 as third-quarter earnings season kicked off with strong results from some of America’s biggest banks, including JPMorgan Chase (JPM) and Wells Fargo (WFC).
The S&P 500 gained 0.61% on the day to close at 5,815.03, while the Dow Jones Industrial Average increased by 440 points, or 1%, to close at 42,863.86. The technology heavy Nasdaq index rose 0.33% to finish trading on the day at 18,342.94. However, the Nasdaq was held back by an 8% decline in the share price of Tesla (TSLA) after the electric vehicle maker’s long awaited Robotaxi event disappointed.
A Strong Start to Q3 Earnings Season
With the Dow and the S&P 500 each at record highs, the Nasdaq is not far behind and only 2% below its all-time high. Analysts expect all three indices to continue hitting new heights in coming weeks, propelled by strong corporate earnings.
The Q3 earnings season has gotten off to a strong start with better-than-expected results from leading U.S. financial institutions. JPMorgan Chase’s stock gained 5% on the day after the bank topped profit and revenue expectations. Wells Fargo’s share price increased 6% on strong profits. The banking sector is widely viewed as a bellwether for the health of the U.S. economy.
Is the SPDR S&P 500 ETF Trust a Buy?
The SPDR S&P 500 ETF Trust (SPY), which tracks the benchmark S&P 500 index, has a consensus Moderate Buy rating among 504 Wall Street analysts. That rating is based on 402 Buy, 94 Hold and eight Sell recommendations issued in the last three months. The average SPY price target of $633.45 implies 9.29% upside from current levels.
