August's Market Rally Was 'Hard to See Coming'

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Stocks were rising modestly on Friday, which comes a day after the S&P 500 closed at an all-time high for the fifth consecutive session, following Jerome Powell's comments that the Federal Reserve will keep interest rates low even if inflation rises above its target levels.

The S&P 500 established another closing high Thursday--its 19th of the year--after Jerome Powell, the Federal Reserve chairman said the central bank would seek inflation that averages 2% over time and adopted a new strategy that reflects the Fed's "view that a robust job market can be sustained without causing an outbreak of inflation."

In what Powell called a "robust updating of our monetary policy framework," the changes mean the Fed essentially will keep rates near zero even if inflation tracks above the Fed’s target level of 2%.

Stocks in Japan closed lower Friday after Prime Minister Shinzo Abe said he would step down because of worsening health. Abe suffers from ulcerative colitis, an inflammatory bowel disease.

Jeff Marks, senior portfolio analyst with Jim Cramer's Action Alerts PLUS portfolio, joined TheStreet to talk about the markets.

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You can follow Katherine Ross on Twitter at @byKatherineRoss.

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