U.S. equities opened modestly higher on Friday as traders paused ahead of a closely watched consumer price index report that could shape expectations for interest rates in the months ahead.

The cautious tone reflected a market that has been trying to balance still-elevated inflation risks against hopes that price pressures may continue to ease. With major indexes near record levels in recent sessions, investors appeared reluctant to make aggressive bets before the data is released.

The CPI reading is expected to help clarify whether the Federal Reserve has room to consider policy easing later this year or whether it may need to keep borrowing costs elevated for longer. That uncertainty has kept trading restrained, even as analysts continue to point to resilience in parts of the U.S. economy.

Friday’s session also underscored how tightly markets remain tied to inflation data. A hotter-than-expected report could pressure stocks and bonds, while a softer number may reinforce optimism that the Fed can move more cautiously going forward.