U.S. stock futures point to a largely flat start on Tuesday, with markets likely to show limited momentum after posting modest gains in the previous session.

Investors are holding back ahead of key inflation readings set to come later this week, which could influence Federal Reserve interest rate decisions.

The Labor Department will release the producer price index (PPI) on Wednesday and the consumer price index (CPI) on Thursday. Economists predict the PPI will remain steady at 3.3% year-over-year in August, while CPI is expected to rise to 2.9% from July’s 2.7%. Core CPI, which excludes food and energy, is forecast to stay at 3.1%.

Last week’s disappointing jobs report strengthened expectations that the Fed will lower rates, but the upcoming inflation numbers could determine the pace of those cuts. According to CME Group’s FedWatch Tool, the market assigns a 92.1% probability of a 25-basis-point reduction and a 7.9% chance of a half-point move.

On Monday, the Nasdaq reached a record closing high, while the Dow and S&P 500 also advanced. The Nasdaq rose 98.31 points, or 0.5%, to 21,978.70; the Dow gained 114.09 points, or 0.3%, to 45,514.95; and the S&P 500 added 13.65 points, or 0.2%, to 6,495.15.

Investor sentiment was supported by hopes that the Fed will ease rates in response to slower job growth, but trading activity remained cautious as participants awaited the inflation reports.

Sector performance was mixed. Software shares led gains, lifting the Dow Jones U.S. Software Index by 1.2%, while gold prices helped drive the NYSE Arca Gold Bugs Index up by 1.2%. Retail and networking stocks showed resilience, whereas telecom, utilities, and natural gas sectors lagged.

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