U.S. stocks opened the week with gains, pushing the Dow Jones Industrial Average, S&P 500 and Nasdaq Composite to fresh record levels as investors reacted to the latest inflation reading and weighed what it could mean for the Federal Reserve’s next move.

The rally reflected growing confidence that price pressures remain manageable, even as traders continue to scrutinize whether the central bank will keep rates elevated for longer or signal a shift later in the year. That uncertainty has left markets highly sensitive to economic data and policy guidance.

The broad advance also showed that investors remain willing to favor equities despite concerns about the pace of growth, borrowing costs and future earnings. Big technology names and other market heavyweights helped support the climb, extending the momentum that has lifted U.S. indexes in recent sessions.

With the Fed decision ahead, market participants are now focused on whether policymakers will sound more cautious about inflation or more open to easing financial conditions. For now, Wall Street’s record-setting run suggests traders are betting that the economy can absorb tighter policy without derailing the expansion.