U.S. stocks climbed in early Monday trading after Federal Reserve Chair Jerome Powell signaled that officials see little urgency to cut interest rates. His comments suggested the central bank remains focused on keeping inflation in check while monitoring the strength of the broader economy.

Powell pointed to resilient consumer spending and a labor market that is still tight, reinforcing the view that the economy may not need immediate policy relief. Investors have been looking for clues on when the Fed could begin easing, but the latest remarks indicate policymakers are willing to stay patient.

The market reaction reflected a familiar balancing act on Wall Street: solid economic data can support corporate earnings and consumer demand, but it can also reduce the odds of near-term rate cuts. That tension has kept traders closely watching every signal from the Fed.

For now, Monday’s gains showed that investors were willing to look past the prospect of higher-for-longer borrowing costs. The next major shift in market sentiment will likely depend on incoming inflation reports, labor data, and any further guidance from central bank officials.