Global equity markets rose on Friday as investors bet the Federal Reserve could begin cutting interest rates later this year. The move reflected growing optimism that U.S. monetary policy may soon shift after a stretch of tighter financial conditions.

Traders were also focused on the next round of U.S. inflation data, which could shape expectations for the central bank’s path ahead. A softer reading would likely strengthen the case for easing, while a hotter print could keep rates elevated for longer.

The latest gains came as markets continued to balance confidence in the broader economic outlook with uncertainty over how quickly inflation will cool. That mix has kept investors attentive to every major data release, especially those that influence borrowing costs and corporate earnings.

Friday’s advance added to a recent pattern of cautious risk-taking across global markets, with equities benefiting from hopes of lower rates even as investors remain alert to policy surprises. The inflation report is now one of the most closely watched signals for the next move in the Fed’s outlook.