World stocks are mixed follow Wall Street’s mostly positive performance ahead of key U.S. inflation data that could influence the pace of the Federal Reserve’s rate cuts.

Investors are gearing up for December's crucial consumer price index to determine the direction of Fed policy.

Stocks closed mixed on Monday, with Big Tech names paring losses as the dollar and bond yields climbed amid fading hopes for interest rate cuts ahead of this week's key consumer inflation reports. The blue-chip Dow Jones Industrial Average (^DJI),

Most U.S. stocks rose Tuesday following an encouraging update on inflation, though drops for Eli Lilly and other influential stocks kept indexes in check. The S&P 500 rose 0.1% as three out of every four stocks in the index climbed.

US stocks gained after cooler-than-expected producer price index data soothed inflation concerns. The numbers on Tuesday showed wholesale inflation rose 0.2% in December on a monthly basis, compared to an estimated 0.4% increase. The reading climbed 3.3% from a year ago, below the projected 3.5% gain.

Asia-Pacific markets were set to open higher after a mixed session on Wall Street that saw the Dow soar and the Nasdaq slip as investors rotated out of tech stocks. Australia's S&P/ASX 200 rose 0.55% on open.