The Dow Jones Industrial Average rose to a record high on Thursday after testimony from Federal Reserve Chairman Jerome Powell hinted that the central bank will cut interest rates later this month.

The 30-stock average rallied above 27,000 for the first time before trading shortly below that level. The Dow was up 0.5 percent just before 10 a.m. Thursday.

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The Dow’s record-breaking rally comes one day after the S&P 500 broke 3,000 for the first time Wednesday morning.

The markets’ strong showings could be attributed in part to Powell’s testimony that the Fed would cut interest rates in the face of slowing global growth and increasing trade tensions.

“Economic momentum appears to have slowed in some major foreign economies, and that weakness could affect the U.S. economy,” Powell said.

The possible interest rate cuts would come despite strong economic growth and low unemployment. In June, the economy saw the addition of 224,000 new jobs, an unexpectedly high figure.

“It is fair to say that such a cut would be unprecedented in modern times given overall financial conditions and the balance of economic data,” Michael Shaoul, chairman and CEO of Marketfield Asset Management, wrote in a note obtained by CNBC.