US stocks advanced on Monday after Federal Reserve Chair Jerome Powell signaled that interest rate cuts could begin as early as September if inflation keeps easing. Investors viewed the comments as a stronger indication that the central bank may soon shift away from its tightening stance.

The prospect of lower borrowing costs lifted sentiment across Wall Street, with traders betting that easier monetary policy could support corporate earnings and broader market activity. The rally reflected growing confidence that inflation has cooled enough to give policymakers room to consider a cut.

Powell’s remarks did not guarantee an immediate move, and future decisions will still depend on incoming economic data. Even so, the possibility of a rate reduction offered a boost to equities as investors weighed the chances of a softer policy path in the months ahead.