U.S. stocks ended higher on Friday as investors increased their bets that the Federal Reserve could soon cut interest rates. The prospect of lower borrowing costs lifted sentiment across Wall Street, with traders looking ahead to the next policy signals from the central bank.

The move came as markets continued to weigh signs of a slowing economy against the possibility that policymakers may act to support growth. Rate-cut expectations have helped fuel recent gains in equities, even as investors remain cautious about inflation data and the pace of future easing.

Oil prices moved lower in the same session, pressured by concerns about weaker global demand. Energy markets have been volatile in recent weeks as traders monitor economic growth trends, supply dynamics, and the outlook for consumption in major economies.

With both stocks and commodities reacting to shifting expectations for monetary policy and growth, investors are likely to stay focused on upcoming economic releases and Federal Reserve commentary for clues on the next market move.