Fed will have hard time raising rates much farther after CPI report -analyst

STORY: U.S. stocks surged and Treasury yields dropped on Thursday after a cooler-than-expected October consumer prices report suggested the Federal Reserve's barrage of interest rate hikes are beginning to have their intended effect.

The Labor Department's consumer price index rose 7.7% from a year ago, after rising 8.2% in September, the first time since February that the annual increase in the CPI was below 8%.