Consumer Price Index showed an acceleration to 2.9%, the highest rate since July. With such high inflation, the Fed is unlikely to cut rates in January.

Inflation is proving stickier than expected, which could cause Fed to hit pause button on more interest rate cuts.

Federal Reserve Bank of Richmond President Tom Barkin said fresh inflation data show the central bank continues to see progress on lowering inflation toward its 2% goal, but that interest rates should remain restrictive.

STOCKS: U.S. stock index futures jumped to extend gains and S&P 500 E-minis were last up 89 points, or 1.5%BONDS: The 10-year U.S. Treasury yield dropped and was last down 12.1 basis points to 4.667%, while the two-year yield was off 9.1 basis points to 4.274%FOREX: The dollar index weakened and was last 0.4% lower to 108.76

U.S. Consumer Price Index report, due out on Wednesday, is expected to reveal a nudge upward in the headline inflation rate, while the core remained steadfast. With recent remarks from Federal Reserve officials signaling a more cautious and gradual approach to interest-rate cuts on the back of resilient economic data,