Add olive oil to the Instant Pot. Using the display panel select the SAUTE function.
When oil gets hot, add onion and optional jalapeno to the pot and saute until onion is soft, 3-4 minutes. Add garlic and chili powder and cook for 1-2 minutes more.
Add broth to the pot and deglaze by using a wooden spoon to scrape the brown bits from the bottom of the pot.
Add salt, black beans, tomatoes, squash and bay leaf to the pot and stir to combine.
Turn the pot off by selecting CANCEL, then secure the lid, making sure the vent is closed.
Using the display panel select the MANUAL function*. Use the +/- keys and program the Instant Pot for 3 minutes.
When the time is up, <.strong>quick-release the pressure.
Serve hot topped with diced avocado, chopped cilantro, lime wedges and/or sliced jalapeno (optional).