Yesterday was a busy day in the US, with both economic data and statements from the Fed. Weekly jobless claims fell significantly below expectations to 198,000 for the week ending January 10, while the decline in both the four-week average and continuing claims indicated a continued strong performance in the labor market.

On the manufacturing side, the New York Fed and Philadelphia Fed indices recorded increases above expectations, signaling a recovery in manufacturing activity. Statements from Fed members reflected a cautious approach to interest rate cuts, but optimism regarding the strong signals from the incoming economic data. #marketrebound