Bonds & Stocks
A rally in some of the world’s largest technology companies fueled a rebound in stocks, with traders also weighing the latest economic data and Fedspeak for clues on the US central bank’s next steps. After a back-to-back slide, the S&P 500 bounced back as volatility in the bond market abated. The megacap space, which bore the brunt of the selling in the past few days, outperformed as Apple Inc. climbed on an analyst upgrade while Taiwan Semiconductor Manufacturing Co.’s bullish outlook lifted chipmakers.
Economy
Initial applications for US unemployment benefits unexpectedly dropped last week to the lowest level in more than a year, underscoring the resilience of the labor market to start the year. Initial claims decreased by 16,000 to 187,000 in the week ending Jan. 13, according to Labor Department data released on Thursday. The figure was below all estimates in a Bloomberg survey of economists. Among states, New York posted the steepest decline, falling over 17,000 on an unadjusted basis. Continuing claims, a proxy for the number of people receiving unemployment benefits, decreased for a third straight week to 1.81 million in the week ending Jan. 6, the lowest since October.
World
The US launched more strikes on Yemen’s Houthis overnight as the Iran-backed militant group continues to roil global shipping markets with attacks around the Red Sea. The American military targeted 14 Houthi missiles just before midnight Yemeni time. They were ready to be launched and presented “an imminent threat to merchant vessels and US Navy ships in the region,” Central Command said.