Stocks still going strong

Written By limadu on Jumat, 27 Desember 2013 | 22.16

NEW YORK (CNNMoney)

The Dow Jones industrial average, the S&P 500 and the Nasdaq were all higher in early trading.

On Thursday, the Dow closed at a record high for the 50th time this year. The S&P 500 also ended at a record high, and the tech-heavy Nasdaq marked a new 13-year high.

Related: Fear & Greed Index gets greedy

Markets have charted big gains this year. The Dow is up more than 25% and S&P 500 has gained nearly 30%. The Nasdaq has soared 38%. The S&P 500 is on pace for its strongest year since 1997.

Several factors have helped spur gains this year, including ongoing economic stimulus from the Federal Reserve, increased confidence in the economy and solid corporate earnings growth.

Related: Best year ever for stock funds

Earlier this month, the Fed announced that it will modestly reduce its bond buying program in January. But many experts believe the bull market will continue for a sixth year in 2014, albeit at a more modest pace.

In the bond market, the yield on the 10-year U.S. Treasury note rose to 3% for a second day. That's the highest level of the year and some investors say it could set the stage for higher interest rates next year.

Shares of Twitter (TWTR) were under pressure following a strong rally this month. Twitter stock has surged some 75% in December and has nearly tripled in price since its November IPO.

Facebook (FB, Fortune 500) shares have also been on a tear this month. The social network has gained more than 20% in December, but shares were little changed Friday.

European markets rose in afternoon trading. Asian markets ended the week on a positive note. To top of page

First Published: December 27, 2013: 9:43 AM ET


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