Global markets moved cautiously higher on Monday as investors positioned for a fresh reading on U.S. inflation later this week. Stocks inched up, Treasury yields firmed and the Japanese yen strengthened against the dollar, reflecting a market that is still sensitive to signs of where rates may go next.

The modest gains came as traders balanced optimism about economic resilience with concern that hotter-than-expected price data could keep borrowing costs elevated for longer. Even small changes in the inflation outlook can shift expectations across equities, bonds and currencies, especially when markets are already uncertain about the pace of future interest-rate cuts.

Treasury yields rose as investors adjusted their outlook ahead of the release, while the yen benefited from the slight pullback in the dollar. Currency moves have remained closely tied to U.S. policy expectations, with global investors watching for clues about how long the Federal Reserve may keep rates restrictive.

For now, the market tone remains measured rather than decisive. With the inflation report still ahead, traders appear to be reducing risk only gradually, waiting for data that could either confirm a cooling price trend or force another reassessment of the path ahead.