U.S. stocks surged to record highs on Friday, driven by strong earnings reports from major banks like JPMorgan Chase, Wells Fargo, and BlackRock, with the S&P 500 climbing 0.6% and the Dow Jones Industrial Average rising 1%. Despite the overall market rally, the Nasdaq lagged behind due to an 8.8% drop in Tesla shares following the launch of its robotaxi, which lacked detailed rollout plans. Banks traditionally set the tone for the earnings season, and this quarter, they reported better-than-expected profits, which boosted investor sentiment. Jamie Dimon of JPMorgan noted continued share buybacks, though at a modest pace due to potentially inflated market levels. The positive earnings reports had a ripple effect on European markets, which also closed higher, while China’s stocks fell ahead of a stimulus briefing. Meanwhile, analysts warn that the narrow breadth of stocks hitting new highs suggests the S&P 500 might be vulnerable to a correction despite its recent gains.