Global equity markets climbed after Federal Reserve Chair Jerome Powell signaled that interest-rate cuts could come before the end of the year. Investors took the remarks as a sign that borrowing costs may start easing sooner than expected, helping calm concerns about slower growth.

The rally extended across major markets, with stocks advancing in Asia, Europe and the United States as traders responded to the prospect of a more accommodative policy stance. Lower rates can support corporate earnings and improve sentiment by making financing cheaper for businesses and households.

The comments also revived hopes that the world economy may avoid a sharper slowdown. Still, analysts cautioned that the Fed’s next steps will depend on incoming inflation and labor market data, meaning any cut remains contingent on economic conditions rather than guaranteed.

For now, the message from markets was clear: even a hint of easing from the U.S. central bank was enough to lift risk appetite globally and push investors back into equities.