Stock market futures were steady Monday as Wall Street looked to build on last week’s momentum and chase fresh record highs. Dow futures ticked higher alongside modest gains in S&P 500 and Nasdaq futures, signaling a cautious but constructive start to a data-packed week.

The setup reflects an optimism-meets-discipline backdrop. The Nasdaq closed last week at back-to-back record highs, while the S&P 500 edged within striking distance of its peak. Tech leadership remains intact: mega-cap names extended gains, with Apple notching its best week in years and semiconductor bellwethers continuing to attract flows. The tone was reinforced by a pullback in volatility and resilient market breadth into Friday’s close.

This week’s catalysts center on inflation and policy. Investors are bracing for the Consumer Price Index and Producer Price Index prints, followed by retail sales—updates that will test the market’s soft-landing narrative. The path of inflation, particularly goods prices and any pass-through from recent tariffs, will shape expectations for the Federal Reserve’s next moves. Rate-cut odds into September remain elevated, with markets still discounting additional easing by year-end, contingent on benign inflation and stable growth.

Policy risk remains a swing factor. Newly implemented reciprocal tariffs and sector-specific duties are feeding debate over their ultimate effect on prices, supply chains, and corporate margins. Thus far, equities have leaned into the view that large-cap, cash-rich tech companies can weather the policy transition, but positioning could shift quickly if price data re-accelerate.

Key levels to watch include prior highs on the S&P 500 and Nasdaq, along with the 10-year Treasury yield as a barometer for growth and discount rates. For equity investors, the near-term playbook is straightforward: earnings leaders and balance-sheet strength continue to command a premium, while any upside surprise in inflation could spark a rotation toward value and defensives. All eyes are on Tuesday’s CPI to validate—or challenge—the market’s record-setting ambitions.