Global equity markets moved lower on Friday as investors grew more cautious ahead of a closely watched U.S. inflation report. The pullback came as bond yields climbed, reinforcing expectations that borrowing costs may stay elevated for longer.

The firmer yield backdrop weighed on risk appetite across markets, while the U.S. dollar held steady. Traders appeared reluctant to make large bets before fresh inflation data could reshape views on the Federal Reserve’s next move.

The softer tone in stocks reflected a broader wait-and-see mood after recent market gains. With inflation still a central driver of rate expectations, even modest surprises in the data could influence equities, bonds and currencies in the days ahead.

Analysts said investors are likely to remain cautious until the new figures provide clearer evidence on whether price pressures are cooling enough to support easier policy later this year.