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STORY: Shares of big banks helped boost the Dow and S&P 500 to fresh record highs on Friday, while the latest inflation data supported expectations the Federal Reserve would cut interest rates again in November.

The Dow climbed about 1%, the S&P added six-tenths of a percent and the Nasdaq rose a third of a percent.

Third-quarter earnings season kicked off with strong results from JPMorgan Chase, Wells Fargo and BlackRock, with shares of all three ending higher.

Meanwhile, data from the Labor Department showed producer prices were unchanged in September, compared to the slight rise that was forecast by economists polled by Reuters.

That kept the mostly positive market sentiment rolling, said Brian Mulberry, client portfolio manager at Zacks Investment.

"So producer prices came out this morning less than expected. That's good. That means that we're probably still on track for two more quarter point rate cuts from the Federal Reserve and the market likes that, that's what they really want to see. In particular that's good for Dow stocks. What we've seen over the last 90 days in Q3 is a real pivot to value. We've seen some of the higher-flying growth names come off of their highs, and that money coming back into a little bit more reasonably valued, large cap value type of stocks."

Other notable stock moves included Tesla, which slumped 9% after the EV maker unveiled its long-awaited robotaxi.

CEO Elon Musk offered few details about how Tesla could ramp up production or overcome potential regulatory hurdles. As a result, shares of rival Uber rose nearly 11%, while Lyft gained 9.5%.