Bonds & Stocks
Treasury yields fell as the latest economic reports did little to alter bets on a Federal Reserve pause next week. The euro remained lower after the European Central Bank kept rates unchanged. Two-year yields, which are more sensitive to imminent policy moves, dropped three basis points to 5.09%. Swap contracts project less than 50% odds for one more Fed hike in the current tightening cycle.
Economy
The US economy grew at the fastest pace in nearly two years last quarter, fueled by a surge in consumer spending. Gross domestic product accelerated to a 4.9% annualized rate, more than double the second-quarter pace, according to the government’s preliminary estimate Thursday. The economy’s main growth engine — personal spending — jumped 4%, also the most since 2021.
World
Israel’s military said it made a limited ground raid into northern Gaza with infantry and tanks, before withdrawing, as it kept up air strikes on the besieged territory. A series of Israeli incursions have previously sought to gather intelligence on Hamas and hostages. US President Joe Biden confirmed he’s asked Israel to delay a full ground invasion to help secure the release of more people held by Hamas, which the US and European Union designate a terrorist group. That came hours after Israeli Prime Minister Benjamin Netanyahu reiterated such an operation is being prepared.