Stocks rise modestly as traders brace for upcoming inflation data

U.S. stocks opened slightly higher on Friday as investors waited for fresh inflation data expected next week. Traders appeared cautious, using the session to reposition before a report that could influence how quickly the Federal Reserve moves on interest rates.

The market's early gains were modest, reflecting a wait-and-see mood rather than a strong risk-on move. Investors are closely watching whether price pressures continue to cool, a key factor in determining the central bank's next steps.

The upcoming reading could carry outsized importance for markets because it may either reinforce expectations for easier policy later this year or signal that borrowing costs could stay elevated for longer. That uncertainty has kept many investors focused on economic data rather than broad stock selection.

For now, the tone in U.S. equities remains restrained, with traders balancing hopes for softer inflation against the risk of policy tightening staying in place longer than anticipated.