Wall Street on a High: Calming Signals Revive US Markets

The US stock markets experienced a strong upswing on Friday as all three major indices continued their five-week winning streak. The S&P 500 and the Dow Jones Industrial Average closed at new record highs, with the S&P 500 surpassing the 5,800-point mark for the first time in its history. The notable rise in stock prices followed positive quarterly reports from the US major banks JPMorgan and Wells Fargo. Both financial institutions presented solid results for the third quarter, showing no signs of an impending consumer slowdown. Jamie Dimon, CEO of JPMorgan, praised the company's performance but warned of increasing geopolitical risks, which he believes are "dangerous and getting worse." Another critical factor contributing to Friday's upswing was the unexpectedly moderate rise in the producer price index in September. The index remained stable compared to the previous month, contrary to forecasts that anticipated a slight growth of 0.1%. Core inflation, as measured by the core PPI, rose by only 0.1%, falling short of analysts' expectations. David Russell, a strategist at TradeStation, commented that although the consumer price index (CPI) recently exceeded expectations, the less dramatic producer prices are providing some market reassurance, potentially leaving the door open for a moderate monetary policy path by the Federal Reserve. Looking to the near future, investors are focusing on the upcoming retail sales figures, scheduled for release on October 17. Analysts at Bank of America are predicting a strong increase of 0.8%, while the general expert consensus expects a more modest rise of 0.2%.