U.S. stocks climbed to new record levels on Monday, with the S&P 500 and Nasdaq both ending the session at all-time highs after Federal Reserve Chair Jerome Powell indicated that policymakers may deliver fewer interest-rate cuts than traders had been expecting this year.

The move reflected a shift in market expectations for monetary policy, as investors weighed the possibility of a more cautious Fed against the latest signals on inflation, growth, and borrowing costs. Shares in major technology companies helped drive the rally, adding momentum to an already strong market.

The new highs came as traders reassessed the pace of easing and its impact on corporate earnings, consumer demand, and financing conditions. Even with the prospect of fewer cuts, the market’s reaction suggested that investors viewed the Fed’s comments as consistent with a stable economic backdrop.

Monday’s advance adds to a year of strong gains for U.S. equities, with large-cap growth stocks continuing to lead the broader market. Analysts will now be watching upcoming economic data and Fed remarks for clues about whether expectations for rate cuts will be revised again.