GLOBAL MARKETS-Stocks tumble, dollar jumps after hot U.S. inflation data

(Updates after U.S. CPI data) By Harry Robertson LONDON, Feb 13 (Reuters) - European stocks and S&P 500 futures slid on Tuesday, extending their losses, after data showed U.S. inflation slowed less than expected in January. The dollar and U.S. Treasury yields jumped after the data as investors sharply reined in bets on how much the Federal Reserve will cut interest rates this year. Futures for the U.S. S&P 500 EScv1 were last down 1.12%, extending a fall of 0.35% before the data, while Nasdaq futures NQcv1 were 1.64% lower. U.S. stocks have been trading at record highs, boosted by the big technology companies and expectations the Fed will soon cut rates. The Europe-wide Stoxx 600 index .STOXX was last down 0.92%, having traded 0.47% lower before the data. Germany's Dax .GDAXI fell 0.91%, while Britain's FTSE 100 .FTSE was off by 0.44%. U.S. inflation, as measured by the consumer price index (CPI), fell to 3.1% year-on-year in January, from 3.4% in December. Economists polled by Reuters expected a lower reading of 2.9%. The inflation rate has fallen from a peak of 9.1% in June 2022, causing the Fed to call time on interest rate hikes and start thinking about cuts. The yield on 10-year Treasury notes US10YT=RR soared and was last up 12 basis points at 4.291%, from 4.154% before the data. The dollar index =USD , which measures the U.S. currency against six rivals, rose sharply and was last up 0.41% at 104.57, while the euro EUR=EBS was down 0.39% at $1.073. Investors on Tuesday were pricing in around 94 basis points of cuts from the Fed by the end of the year, down from around 112 before the data. They saw a 40% chance of the first cut coming by May, compared to 71% previously, according to money market pricing. Around 145 basis points of cuts were priced in at the start of February, but strong economic data has caused investors to dial down their expectations. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ World FX rates YTD http://tmsnrt.rs/2egbfVh Global asset performance http://tmsnrt.rs/2yaDPgn Asian stock markets https://tmsnrt.rs/2zpUAr4 Investors reduce bets on central bank rate cuts https://reut.rs/3SX45GU ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Harry Robertson; Editing by Bernadette Baum and David Evans) (([email protected])) ((To read Reuters Markets and Finance news, click on https://www.reuters.com/finance/markets For the state of play of Asian stock markets please click on: 0#.INDEXA ))