Global stocks moved higher on Monday as investors increased their bets that the Federal Reserve could lower interest rates later this year. U.S. stock futures also pointed to a firmer open, adding to the upbeat tone across major markets.

The latest moves reflect a market that is increasingly focused on the outlook for monetary policy. Traders have been weighing signs of cooling inflation and other economic data for clues about when the central bank may begin easing borrowing costs.

Lower rates would typically support equities by making financing cheaper for companies and improving sentiment among investors. That expectation has helped push stocks higher in recent sessions, even as markets remain sensitive to upcoming economic releases and comments from Fed officials.

Still, analysts caution that the path forward depends on whether inflation continues to moderate and whether the broader economy stays resilient. For now, hopes of a rate cut are giving global markets a boost.