The CPI gained 7% year-over-year last month, in line with the median forecast. The pace reflects the strongest inflation since 1982.
The US added 199,000 nonfarm payrolls last month, far lower than the 450,000 median estimate. Hiring faltered in December as Omicron cases surged.
Activity in the manufacturing sector grew in December, per ISM data, while a record 4.5 million Americans quit their in November, per JOLTS release.
Investors will get a sense of the health of the US economy with the ISM manufacturing index and JOLTS job openings data due at 10 a.m. ET.
Markets gave up gains late in the trading day after getting an early boost when the Labor Department reported a drop in weekly jobless claims.
The S&P 500 edged higher to clinch its 70th record for 2021 while the Dow Jones Industrial Average also edged up to mark its sixth consecutive win.
The S&P 500 will try again for a fresh high after pulling back in the final minutes of trade Tuesday and missing out on its 70th record close of 2021.
US stock futures marked modest gains Friday as investors anticipated the inflation data that is coming out today.
The disappointing November jobs report added to the uncertainty as investors try to chart the path of Fed policy.
US nonfarm payrolls grew by 210,000 last month — way below the median forecast of 550,000 jobs from economists surveyed by Bloomberg.
Fed Chief Jerome Powell also warned investors against the Omicron strain, which he said threatens to slow down the country's economic recovery.
Powell also remarked on Tuesday that inflation no longer warrants the "transitory" label.
Little is known about the new COVID strain emerging in Africa. That hasn't stopped traders from betting big on lockdowns and a return to telework.
Bond yields continued to rise with the 10-year Treasury note rising slightly to 1.672%, well above a recent low of 1.418%.
Bond yields continued to rise with the key 10-year Treasury note edging up to 1.648%, well above a recent low of 1.418% touched in November.
The yield on 10-year Treasury fell to 1.522%. Oil prices slipped as the COVID-19 surge in Europe raised concerns about the economic recovery.
Stocks edged lower as Treasury yields climbed on expectations the Fed may have to hike interest rates sooner.