Inflation data this week has come in below forecasts. Earnings season is off to a solid start. Is this the medicine the market nees?

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

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

The Consumer Price Index 0.4% M/M in December, matching the consensus and slightly accelerating from the 0.3% increase in the previous month, according to U.S. Bureau of Labor Statistics data released on Wednesday.

U.S. consumer prices increased slightly more than expected in November as energy costs rose, pointing to an inflation trend that lines up with the Federal Reserve's view for a slower path of rate cuts this year.