US stocks opened modestly higher on Monday as investors waited for a new round of inflation data that could help shape the Federal Reserve’s next interest-rate decisions. Traders remained cautious ahead of the releases, which are likely to influence expectations for how long borrowing costs stay elevated.

The market’s muted start reflected a familiar pattern on Wall Street: investors are willing to add risk, but only carefully, when key economic numbers are due. Inflation readings remain especially important because they feed directly into forecasts for monetary policy, bond yields, and equity valuations.

Analysts say the upcoming data could either reinforce hopes that price pressures are easing or revive concerns that inflation is still sticky. That uncertainty has kept markets sensitive to even small moves, with investors watching both the headline numbers and the broader trend beneath them.

For now, the tone on Wall Street is one of restrained optimism rather than strong conviction. Until the inflation figures are released, traders are likely to stay focused on signs of whether the Federal Reserve will have room to cut rates later in the year.