US Treasury yields slipped 5 basis points on Thursday, with the 10‑year benchmark retreating to 4.95% after an eight‑day rise that began with the Fed’s 25‑basis‑point hike. The move was flagged by the Treasury Department as a sign of renewed confidence in the Fed’s inflation‑fighting credibility.
The Dow Jones Industrial Average gained 224 points, a 0.4% uptick, while the S&P 500 rose 0.9% and the Nasdaq Composite surged 1.5%. The gains were fueled by a pullback in Treasury yields and a rebound in high‑growth tech names, echoing the market’s appetite for risk after the rate hike.
Initial jobless claims fell by 10,000 to 196,000, the lowest level since July, according to the Labor Department. The figure also beat the 208,000 forecast from economists, underscoring a labour market that remains resilient despite a pause in hiring.
Pending home sales nudged up 0.3% to a 71.2 index, marking the first increase since May, per the National Association of Realtors. The uptick comes amid still‑high mortgage rates that continue to weigh on demand.
Housing starts fell 2.6% to an annualised 1.28 million, the weakest pace since the pandemic, with multifamily projects down 22%. Single‑family construction, however, climbed 7.6% to an annualised 918,000, the fastest pace since March, driven by gains in the West and Midwest.
Looking ahead, traders will focus on the Fed’s next policy meeting and the upcoming inflation data. A pause in rates is expected, but any deviation could reshape the yield curve and influence equity valuations in the coming weeks.