But a stronger-than-expected job market could also keep upward pressure on inflation. That would lessen the chances of the Federal Reserve cutting rates as soon as its March meeting. Traders are now betting on a roughly 57 per cent chance of that, down from more than 70 per cent a week ago, according to data from CME Group.

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“The story this week continues to be robust economic data, and how it may keep rate cuts on ice for a while,” said Chris Larkin, managing director, trading and investing, at E-Trade from Morgan Stanley.

Other reports on the economy were mixed Thursday. One showed manufacturing in the mid-Atlantic region is contracting by more than economists expected. Another said homebuilders broke ground on more projects last month than economists expected, even if it was weaker than November’s level.

Stocks of homebuilders were mixed following the report, including a 0.7 per cent slip for D.R. Horton and 3.2 per cent climb for Beazer Homes.

On the losing end of Wall Street were several financial companies that reported weaker results for the end of 2023 than analysts expected. Discover Financial Services fell 10.6 per cent, and KeyCorp lost 5.6 per cent.

In stock markets abroad, indexes rose across much of Europe and Asia to trim their losses for the week so far.

AP

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