U.S. stocks opened slightly higher on Friday as investors looked ahead to a closely watched inflation report due next week. The muted move reflected caution across markets, with traders avoiding big bets until fresh price data offers a clearer signal on the outlook for interest rates.

The S&P 500 gained about 0.2% in early trading, while broader market sentiment remained restrained. Many investors are trying to gauge whether inflation is cooling enough to support the case for lower borrowing costs later this year.

Recent trading has been shaped by shifting expectations for central bank policy, as well as signs that economic growth remains uneven. That has left equities sensitive to each new data release, especially reports that could affect the timing of any rate changes.

For now, market participants appear to be waiting rather than chasing risk. Next week’s inflation figures are likely to play a major role in setting the tone for stocks, bonds, and currency markets in the days ahead.