The market ended the third quarter at a record high Friday after a four-day winning streak that began after Federal Reserve Chair Janet Yellen said the central bank plans to continue to raising interest rates.
“It’s all about the confidence they have that despite low inflation, it still makes sense to raise interest rates,” said Randy Frederick, vice president of trading and derivatives at the Schwab Center for Financial Research. “She’s confident in the economy and the economic backdrop is very solid.”
For the quarter, the S&P 500 climbed more than 3 percent, the Dow Jones Industrial Averages increased 4.8 percent, and the Nasdaq increased 5.7 percent. The S&P 500 and Nasdaq both closed at all-time highs.
Although the Dow closed Friday short of its all-time high, the quarterly gains for the index marked the eighth consecutive quarter of rising Dow values – the longest such increase since 1997.
Frederick said he expects the market to continue to rise in the fourth quarter as the global economy is likely to keep growing and interest rates in the U.S. should rise more, which will help profits for banks.