Stocks rose to all-time highs on Friday as investors ended a record-setting week on a high note.

The Dow Jones Industrial Average jumped 243.95 points, or 0.9%, to 27,332.03. The S&P 500 gained 0.5% to end the day at 3,013.77, notching its first close above 3,000. The Nasdaq Composite advanced 0.6% to 8,244.14.

The major indexes passed multiple milestones and posted solid gains this week amid testimony from the top Federal Reserve official signaling that a rate cut was coming. The Dow closed above 27,000 for the first time on Thursday and Friday's gain brought its increase on the week to 1.5%. The S&P 500 rose 0.8% and the Nasdaq, meanwhile, ended the week up 1%.

Volume was light on Wall Street Friday, however, with around 30 million shares of the SPDR S&P 500 ETF changing hands, the lowest amount of the year.

"You can't fight the Fed here," said Michael Katz, partner at Seven Points Capital. "We have a strong bull market and we have a strong uptrend. As long as we're heading higher, we've got to keep buying dips and not fight the trend."

Shares of Dow, Inc. led the Dow Industrials higher, rising 4%. Intel and Caterpillar, meanwhile, climbed 2.7% and 3.3%, respectively. J.B. Hunt Transport Services was the best-performing stock in the S&P 500, jumping 5.9%, and leading a 1.8% gain in the industrials sector.

Fed Chair Jerome Powell testified in front of congressional leaders this week that "crosscurrents" from weaker overseas economic activity and rising trade tensions are dampening the outlook on the U.S. economy.