Bonds & Stocks
Wall Street took the latest inflation figures in stride, with big tech leading a rebound in stocks in early trading after solid earnings from Amazon.com Inc. and Intel Corp. S&P 500 contracts signaled the benchmark gauge will rise from its lowest since May. Futures on the techheavy Nasdaq 100 gained almost 1%. Treasury two-year yields, which are more sensitive to imminent policy moves, were little changed. The dollar dropped.
Economy
Treasury Secretary Janet Yellen said the surge in longer-term bond yields in recent months is a reflection of a strong US economy, not the jump in government borrowing driven by a widening fiscal deficit. “I don’t think much of that is connected” to the US budget deficit, Yellen said at an event in Bloomberg’s Washington office Thursday. “We’re seeing yields go up in most advanced countries.”
World
Israel sent troops on a limited raid into Gaza for the second night in a row, as it gears up for a more extensive ground offensive. The nation said it wouldn’t agree to a hostage exchange deal that includes sending fuel to Hamas. Meanwhile, Iran’s deputy foreign minister met with a Hamas official in Moscow. Hamas, which has released four hostages so far, said others would only be let go when Israel allowed in more supplies.