Dubai: Stronger than expected third quarter results along with progress on US tax reforms are likely to continue underpin strong momentum in US and global equities.

The US equities have been on a record breaking spree, with the S&P 500 producing 49 fresh highs this year, an annual rate that’s been surpassed five times since 1946, according to Bloomberg Data.

“Given this strong backdrop, equities markets are expected to maintain their positive trend over the next few weeks with no major breakout expected,” Vaqar Zuberi, Head of Hedge Funds at Mirabaud Asset Management, told Gulf News.

The Dow Jones Industrial Average hit a new record high of 23,329, continuing its gaining streak for sixth straight week. The index has gained 18 per cent so far in the year.

Even the S&P 500 index has been on a record breaking rally. The S&P 500 index touched a new peak of 2,575.44, after gaing 0.9 per cent for the week. The index has gained 15 per cent so far in the year.

This record-breaking rally, which has triggered a debate on company valuations, has been in place despite the negative news around including the geo-political tensions due to North Korea, or expected reveral of a nuclear deal with Iran.

“Investors are likely continue ignoring overstretched valuations and keep driving equities higher for the remainder of the year if they believe fiscal reforms will be implemented soon,” said Hussain Syed, Chief Market Strategist at FXTM.

A lot will also depend on the choice of next Federal Reserve Chairman, for which the interviews are under way by the US President Donald Trump.

“The appointment will likely have a significant impact on financial markets. The renomination of Yellen is likely to soothe financial markets, as she is expected to maintain the Federal Reserve’s stance on a gradual normalisation of the Federal Reserve’s monetary policy,” Zuberi said. Janet Yellen term as the Chairwoman will end in February, though there are chances of her getting re-appointed.

“The nomination of Taylor is likely to be taken by market participants that the Federal Reserve would raise rates as a faster pace, and may lead to a selloff in bond and equities markets,” he added.

Bitcoin hits new peak

Meanwhile, Bitcoin prices hit a new peak of more than $6,100 on Saturday, before trading lower, despite the upcoming split called as Bitcoin gold.

Bitcoin prices hit a record high of $6,148.82 on Oct 21, and eased to $5,830.13, down 3 per cent on Sunday. The total market cap stood at $97 billion, equal to that of Kraft Heinz or Honeywell.

“There’s no doubt that it has become the most crowded trade in 2017 and the risks of jumping into the trade now are very high. This is just to say that Bitcoin trading is not for the faint-hearted,” said Hussain Syed, Chief Market Strategist at FXTM. The cyrptocurrency has gained more than 6 times so far in the year, outperforming all other asset classes despite the earlier split in August, which resulted in creation of Bitcoin cash.