Applications for US unemployment benefits held near historic lows, with initial claims rising by 1,000 to 200,000 for the week ended Jan. 17. This stability in the labor market provides a key backdrop for Federal Reserve policy decisions as it navigates inflation and growth.

The US economy expanded faster than first reported, with third-quarter GDP growth revised to a 4.4% annualized rate. This marks the strongest pace in two years, suggesting underlying momentum despite higher interest rates and persistent inflationary pressures.

Markets will parse this data for clues on the Fed's path, balancing a resilient economy against cooling inflation. The combination of steady jobless claims and stronger growth could influence equity and bond valuations as investors gauge the timing of potential rate cuts.