The S&P 500 and Nasdaq Composite reached all-time highs on Friday as Netflix shares rose. The broader market also climbed after the top Federal Reserve official characterized the U.S. economy as "strong."

The rose 0.6 percent to close at 2,874.69, led by gains in materials and tech. Friday marked the S&P 500's first record close since Jan. 26. The tech-heavy Nasdaq advanced 0.9 percent and closed at 7,945.98.

Netflix rose 5.8 percent on Friday after analysts at SunTrust upgraded the stock, noting it will keep going higher because of its success overseas. The stock has had a strong week, gaining more than 10 percent this week.

The Dow Jones Industrial Average jumped 133.37 points to 25,790.35 as DowDuPont outperformed.

Fed Chair Jerome Powell delivered a speech at the Jackson Hole Symposium in Wyoming, where leading central bankers met to discuss the future of monetary policy.

Powell said he sees "further, gradual" rate hikes moving forward, noting the economy is "strong" and can handle tighter monetary policy.

"The market wasn't sure how hawkish he was going to be," said Shawn Cruz, manager of trader strategy at TD Ameritrade. "I think the biggest takeaway from the speech is he doesn't see inflation rising meaningfully above 2 percent, ... so a gradual pace of rate hikes is still appropriate."