U.S. stocks edged higher in early Monday trading after investors absorbed the Federal Reserve’s latest signal that it may stay patient on interest rates. The move reflected cautious optimism, with traders reassessing how long borrowing costs could remain elevated.

The market’s reaction came as inflation remains a key concern for policymakers. Fed officials have indicated they want more convincing evidence that price pressures are easing before considering any further rate cuts.

That stance has kept investors focused on upcoming economic data, especially reports that could show whether inflation is cooling enough to give the central bank more room to act. For now, the message from the Fed suggests a wait-and-see approach rather than an immediate shift in policy.

Despite the modest gains, sentiment remained restrained as markets balanced hopes for easier policy against the risk that inflation could stay stubborn. Analysts say the next round of data will likely shape expectations for rates and help determine whether Wall Street’s rebound can continue.