Wall Street slips as investors brace for key inflation report

U.S. stocks opened slightly lower on Monday as traders waited for a major inflation report later this week. Investors are looking for fresh signals on whether price pressures are cooling enough to shape the Federal Reserve’s next interest-rate decision.

Treasury yields also moved higher, reflecting caution across markets ahead of the data release. The modest pullback in equities suggests investors are reluctant to make large bets until they see whether the report changes the outlook for borrowing costs and monetary policy.

Market participants have been watching inflation closely because it remains one of the biggest factors driving rate expectations. If the numbers come in hotter than expected, they could strengthen the case for tighter policy for longer. A softer reading, by contrast, could support hopes for easier financial conditions later in the year.