US stocks opened modestly higher on Friday as investors waited for a crucial inflation report that could influence the Federal Reserve’s next policy decisions. The early move reflected cautious positioning rather than a strong risk-on shift, with traders largely focused on the personal consumption expenditures price index, or PCE.

The PCE measure is closely watched by the Fed because it offers a broad view of price pressures across the economy. A reading that comes in hotter than expected could reinforce concerns that inflation remains sticky, while a softer result may strengthen the case for interest-rate cuts later in the year.

Markets have spent much of the week balancing optimism about economic resilience against uncertainty over how long borrowing costs will stay elevated. That tension kept trading relatively subdued at the open, even as investors looked for clues about the pace of inflation and the central bank’s next move.

For now, the session’s modest gain suggests traders are waiting for data rather than making bold bets. The report’s release could set the tone for stocks, bonds and the dollar as markets assess whether price growth is cooling enough to give the Fed more room to ease policy.