Tech, small firms lead stock gains

NEW YORK — Large technology and health care companies and smaller U.S.-focused firms rose again Friday as stocks finished the third quarter at record highs.

Stocks were mixed at the start of trading, as they had been the day before. But chipmakers and big-name technology companies pulled stocks higher, as they have done all year. Health care companies also did better than the rest of the market.

The Standard & Poor’s 500 index rose 9.30 points, or 0.4 percent, to 2,519.36. The Dow Jones industrial average turned higher to finish with a gain of 23.89 points, or 0.1 percent, at 22,405.09. The Nasdaq composite jumped 42.51 points, or 0.7 percent, to 6,495.96. The S&P 500 and Nasdaq both closed at all-time highs.

The Russell 2000 index of small-company stocks added 2.08 points, or 0.1 percent, to 1,490.86. It’s also at record highs after a big rally this month. It climbed 6 percent in September as investors felt positive about the U.S. economy and hoped Congress and President Donald Trump’s administration will reduce taxes.

The market ended the quarter on a four-day winning streak that began after Federal Reserve Chairman 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.”

Shares of technology companies rose further and were the best-performing S&P 500 sector in the third quarter. They also held that distinction in the first quarter. The S&P 500 technology index has climbed 26 percent in 2017, while the S&P 500 is up 12.5 percent.

Facebook shares rose $2.14, or 1.3 percent, to $170.87 and chip equipment maker Applied Materials rose $1.47, or 2.9 percent, to $52.09. Chipmaker Nvidia advanced $3.09, or 1.8 percent, to $178.77.

The recent gains for tech companies have come in spite of a slump for Apple, the world’s most valuable publiclytraded company. While Apple has soared this year, it’s down 4 percent since it announced its new line of iPhones and other products Sept. 12.

KB Home advanced after its third-quarter profit and sales beat estimates. The stock rose $1.90, or 8.6 percent, to $24.12. Other homebuilders also rose. Meritage Homes picked up 85 cents, or 2 percent, to $44.40 and D.R. Horton advanced 95 cents, or 2.4 percent, to $39.93.

Oil prices recovered and turned higher just before the close of trading. Benchmark

U.S. crude rose 11 cents to $51.67 a barrel in New York. Brent crude, the standard for international oil prices, rose 13 cents to $57.54 a barrel in London.

U.S. crude oil rose 12 percent in the third quarter, which helped energy companies do better than the rest of the market. But on Friday those companies gave back some of their recent gains.

Bond prices turned lower. The yield on the 10-year Treasury note rose to 2.33 percent from 2.31 percent.

Gold fell $3.90 to $1,284.80 an ounce. Silver slid 17 cents to $16.68 an ounce. Copper fell 3 cents to $2.96 a pound.