Global equity markets advanced on Friday after Federal Reserve Chair Jerome Powell said a rate cut could be possible in the coming months, a signal investors read as a shift toward easier policy. The remarks lifted sentiment across major exchanges as traders priced in the prospect of lower borrowing costs.

The rally came as markets continued to weigh the outlook for growth, inflation, and the pace of future central bank moves. Stocks in the United States and abroad benefited from the expectation that a softer stance from the Fed could support corporate lending, investment, and consumer spending.

Analysts said the reaction reflected how closely investors are watching the Fed for any indication of when it may begin easing after a prolonged period of tighter monetary policy. Even a cautious hint from the central bank was enough to trigger broad gains across risk assets.

While the outlook remains dependent on incoming economic data, Friday's trading showed how quickly markets can respond to changes in policy expectations. For now, the possibility of a rate cut has given investors a fresh reason to buy.