The latest data on the consumer-price index showed that inflation rose 7.1% in November from a year ago, compared with 7.7% in October -- and cooler than economists surveyed by The Wall Street Journal had expected. Core inflation, which excludes food and energy, increased by 6%, softening from 6.3%.

"I'm happily surprised. We have cooler headline inflation and cooler core," said Fahad Kamal, chief investment officer at Kleinwort Hambros.

The consumer-price index data has been among the most widely anticipated on Wall Street, with many investors jittery about the path of inflation and how it will shape the Fed's rate increases over the next year. CPI days have grown more volatile throughout the year, with stock and options traders bracing for large one-day moves around the data releases.