Both the S&P 500 and the Nasdaq Composite Index ended at their highest levels in a month on Friday after banking shares led by JPMorgan Chase & Co rose following the release of their quarterly results.
After rising 0.4% on Friday, the S&P 500 finds itself up 2.7% for the week and 4.2% so far in 2023, while the Nasdaq advanced 0.7% to post a weekly gain of 4.8%; its highest since November 11. The Dow Jones Industrial Average gained 0.3% to post a weekly gain of 2%.
JP Morgan Chase & Co lead the share surge with its 2.5% climb after beating its quarterly earnings estimates, while the Bank of America followed by beating estimates as well. Although Wells Fargo & Co and Citigroup Inc fell short of their quarterly estimates, they also experienced stock gains.
While the banking stock rise is a positive sign for investors, Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia, insists that investors will continue to watch market signs and proceed with caution.
“This has shifted the focus back to earnings,” Tuz stated. “Even though the earnings were basically OK, people are just kind of stepping back, and you’re going to see a wait-and-see attitude with stocks.”