On Monday, Wall Street's major market averages found themselves in a mixed state as investors and traders eagerly awaited the release of crucial inflation data later in the week. The tech-focused Nasdaq Composite (COMP:IND) led the way higher with a 0.2% gain, while the benchmark S&P 500 (SP500) edged up 0.1%. In contrast, the blue-chip Dow (DJI) experienced a slight decline of 0.4%.

From a sector perspective, only two out of the 11 S&P sectors traded in positive territory. The Information Technology sector emerged as the top gainer on Monday, while the Real Estate and Industrials sectors suffered the most.

Treasury yields saw a downward trend, with the U.S. 2 Year Treasury yield (US2Y) dipping by 2 basis points to 4.03%. Simultaneously, the U.S. 10 Year Treasury yield (US10Y) moved down by 3 basis points to 3.91%.

In terms of economic data, the day remained quiet with no major events on the calendar. However, the Federal Reserve Bank of New York announced that U.S. consumers had significantly lowered their inflation expectations at the medium-term horizon, while their short- and longer-term expectations remained stable. This information from the July Survey of Consumer Expectations may impact the Federal Reserve's decision-making process.

Market analysts are closely watching the upcoming inflation data, which is expected to be released later this week. Deutsche Bank's Peter Sidorov believes that this data will be crucial in determining whether the Federal Reserve gains the confidence to signal a potential rate cut at the September meeting.

In stock news, Starbucks Corporation (SBUX) saw a 2.1% increase in its share price following reports that the company may be considering adding Elliott Investment Management's Jesse Cohn to its board in a potential settlement. Additionally, shares of KeyCorp (KEY) soared by 8.3% after Scotiabank (BNS) announced plans to acquire a 14.9% stake in the company for $2.8 billion in cash. Furthermore, Monday.com (MNDY) experienced a significant rise of 12.1% after surpassing analyst expectations in its Q2 results and raising its full-year revenue outlook.

Overall, the mixed state of Wall Street's major market averages reflects the cautiousness among investors as they await key inflation data later this week. This data will likely play a crucial role in shaping the Federal Reserve's future monetary policy decisions and could have a significant impact on market trends in the coming months.