The S&P 500 inched higher, nearing its record levels, supported by a broad-based rally with eight out of eleven sectors in positive territory. Financial stocks led the charge, with the Financials sector gaining 0.6%. Key contributors to this sector’s strength were Bank of America, which rose 2.2% after surpassing profit expectations, and Charles Schwab, which jumped 7.8%. The broader Banks index reached its highest point in over two years, reflecting renewed optimism around the banking sector.
Despite the financial sector’s overall strong performance, there were outliers. Citigroup fell 1.5%, and Goldman Sachs dropped 0.4%, with both stocks giving up earlier premarket gains after releasing less-than-impressive earnings. Analyst commentary indicated that while third-quarter earnings in the financial sector were improving, they did not reflect an overwhelming recovery.
Health and Energy Sectors Weigh Down the Dow
The Dow Jones suffered losses, largely due to a significant 8.8% decline in UnitedHealth shares after the health insurance giant reported higher-than-expected medical costs for the third quarter. This weighed heavily on the blue-chip index, offsetting gains from other sectors.