Hot inflation data for January was adding to concerns about how much more room the Federal Reserve might have to cut interest rates this year. This chart shows the retreat in expectations for lower rates from last year,

Bond traders pushed out bets for the next Federal Reserve interest-rate cut to December, from mid-year previously, as underlying US inflation last month rose by more than forecast.

Markets took a sharp downward turn on Wall Street after U.S. government data Wednesday showed that inflation accelerated last month. Futures for the S&P 500, Dow Jones Industrial Average and Nasdaq all fell at least 1% less than an hour before the opening bell.