Global stock markets advanced in early trading after Federal Reserve Chair Jerome Powell indicated the central bank could lower interest rates before the end of the year. The comments lifted investor sentiment and fueled hopes that borrowing costs may soon ease.

The rally was broad, with major indices in the United States and overseas posting gains as traders adjusted expectations for the Fed’s next moves. Lower rates would likely support corporate lending, consumer spending, and risk assets, especially if inflation continues to cool.

Powell’s remarks came as markets have been looking for clearer signs that the Fed may shift away from its tightening stance. Even so, the timing and scale of any cut remain uncertain, and officials are expected to keep weighing inflation data, labor market conditions, and overall economic growth.

For investors, the latest comments offered a short-term boost, but analysts cautioned that markets could remain volatile until the Fed provides a more concrete policy signal. The next batch of economic data is likely to play a key role in shaping expectations.