Global equity markets advanced on Monday after Federal Reserve Chair Jerome Powell suggested the central bank may leave interest rates unchanged through the summer. The remarks eased fears that the Fed would continue tightening policy in the near term, giving investors a reason to move back into risk assets.

The rally was broad-based, with major stock indexes in Asia, Europe, and the United States posting gains as traders reassessed the outlook for borrowing costs. Lower expectations for additional rate hikes typically support shares by reducing pressure on corporate financing and improving sentiment across financial markets.

Powell’s comments also signaled that policymakers are watching incoming economic data closely before deciding on any further moves. For markets, the key takeaway was not a formal policy shift but a more patient tone from the Fed, which helped steady investors after weeks of uncertainty about the path of monetary policy.

Analysts said the reaction underscores how sensitive global markets remain to any change in the Fed’s language. Even a cautious hint of a pause can lift stocks, especially when investors are focused on inflation trends, growth risks, and the possibility that the tightening cycle may be nearing an end.