The U.S. stock market finished higher for the fifth consecutive month in August as investor optimism persisted amid a tenuous economic recovery. The S&P 500 had it best August in 34 years, led by the technology sector.

Domestic stocks continued to charge higher in July, despite record low economic output and an uncertain outlook. The S&P 500 shrugged off regional surges in coronavirus cases to rise 5.5 percent for the month, its best July since 2010.^[1]

Markets had a surprisingly strong quarter; in fact, it was the best quarter in decades. The S&P 500 rose almost 20 percent, the strongest quarter since 1998. The Dow Jones Industrial Average had its best quarter since 1987, delivering growth of 17.8 percent.^[1]