U.S. stocks moved higher on Friday, supported by a strong start to earnings season—led by the banking sector—and a series of upbeat economic reports that helped lift overall market sentiment.
By 09:31 ET (14:31 GMT), the Dow Jones Industrial Average added 25 points, or 0.1%, while the S&P 500 advanced 17 points, or 0.3%. The NASDAQ Composite outperformed, rising 110 points, or 0.5%.
Bank earnings take center stage
The banking sector remained in focus as major lenders kicked off the fourth-quarter earnings season. Results from large U.S. banks highlighted how volatile market conditions throughout 2025 boosted trading activity and revenues.
Earlier in the session, PNC Financial Services (NYSE:PNC) reported a 25% surge in fourth-quarter profit, driven by higher interest income and a rebound in dealmaking activity. In contrast, Regions Financial (NYSE:RF) posted adjusted earnings that missed expectations, despite reporting revenue growth and a solid full-year performance.
The strong flow of bank results signaled the full start of earnings season, with several high-profile companies set to report in the days ahead. Netflix, 3M Company, and U.S. Bancorp are scheduled to release results on Tuesday, followed by Johnson & Johnson on Wednesday. Later in the week, reports are also due from Visa, Intel, Abbott Laboratories, and Intuitive Surgical, among others.
The technology sector also attracted attention after Taiwan Semiconductor Manufacturing Company posted record fourth-quarter profits. As a key supplier to Nvidia and Apple, TSMC has benefited from a surge in AI-driven chip demand.
Economic data reinforces growth outlook
Fresh economic data released on Friday added to the positive tone. U.S. industrial production rose 0.4% in December, while manufacturing output increased 0.2%, both exceeding expectations and reinforcing signs of economic resilience.
Earlier in the week, U.S. initial jobless claims unexpectedly fell to 198,000, well below forecasts of 215,000, underscoring continued strength in the labor market. The data bolstered expectations that the Federal Reserve will keep interest rates higher for longer, prompting traders to push back expectations for the first rate cut toward mid-year.
Comments from Fed officials echoed this cautious stance. Austan Goolsbee said policymakers should remain focused on lowering inflation given labor market stability. Jeff Schmid described inflation as still “too hot,” while Mary Daly noted that incoming economic data continues to look encouraging.
Oil prices rebound, set for weekly gains
Oil prices climbed on Friday, rebounding from sharp losses in the previous session as fears of an immediate U.S. military strike on Iran eased, reducing near-term supply concerns.
Brent crude futures rose 1.5% to $64.70 a barrel, while U.S. West Texas Intermediate advanced 1.4% to $60.04 a barrel. Both benchmarks had fallen more than 4% a day earlier after U.S. President Donald Trump said Iran’s crackdown on protesters appeared to be easing, dampening concerns over potential supply disruptions.
Despite the recent volatility, crude prices remain on track to finish the week higher, after touching multi-month highs earlier in the week amid heightened tensions in Iran.
