Inventory futures held on to features after knowledge confirmed that 712,000 filed preliminary claims for unemployment advantages final week, barely beneath economists’ estimates. That quantity, a proxy for joblessness, marked a decline of 42,000 from the earlier week, providing one other signal of enchancment within the labor market following an easing of Covid-19 case numbers.

Traders’ demand for shares has revived as bond markets have calmed. The yield on 10-year Treasury notes, which strikes inversely to the value, slipped to 1.507% from 1.520% Wednesday, placing it on target for a third-consecutive day of declines. Yields climbed as excessive as 1.594% earlier this week.

Shares have been buffeted by sharp strikes in bond yields, fueled by uncertainty over how the $1.9 trillion reduction invoice handed by the Home Wednesday will ripple by way of the U.S. financial system.

Considerations that the dimensions of the stimulus would carry inflation past the Federal Reserve’s consolation zone and set off a rise in rates of interest just lately prompted yields to rise. That sapped urge for food for shares in tech corporations, which had benefited from an prolonged spell of low charges. On the identical time, optimism concerning the financial outlook has bolstered demand for shares of corporations that may profit from a leisure of lockdowns.

Muted inflation knowledge for the beginning of the yr have calmed nerves concerning the outlook for charges. However bond yields will seemingly stay unstable, shifting momentum between completely different segments of the inventory market, mentioned Monica Defend, head of analysis at French asset supervisor Amundi.

“Ultimately it ought to be constructive for the fairness market if now we have a bit extra inflation, a bit extra progress,” she mentioned.

Tech shares together with Apple, Twitter and data-mining agency

Palantir Applied sciences

climbed earlier than the bell in New York. Electrical-vehicle maker Tesla rose over 4%.

Shares of videogame retailer and online-trading sensation

GameStop

dropped about 5% premarket. Volatility has returned in latest classes to the so-called meme shares which might be the darlings of particular person traders who collect on web boards.

Traders’ urge for food for U.S. authorities debt will obtain one other take a look at Thursday with the deliberate public sale of $24 billion in 30-year bonds. The Treasury bought $58 billion of three-year notes on Tuesday and $38 billion of 10-year notes Wednesday.

In abroad markets, the Stoxx Europe 600 edged up 0.4%.

The euro ticked up 0.2% to $1.1955 after the European Central Financial institution mentioned it might increase the tempo of its purchases of eurozone debt after a latest rise in bond yields. The yield on Germany’s 10-year authorities bonds, considered the benchmark secure asset within the single-currency zone, fell to minus 0.361%.

“The eurozone can’t afford tightening monetary situations, and we’ve been importing that from the upper charges within the U.S.,” Ms. Defend mentioned earlier than the speed determination. “It’s one thing the ECB is as a matter of concern.”

China’s Shanghai Composite Index jumped 2.4% in its greatest one-day rise since October. The advance adopted an article in a monetary newspaper encouraging new traders to hunt long-term returns and never be swayed by volatility in shares,

Deutsche Financial institution

strategist Jim Reid mentioned in a notice.

Markets rose elsewhere in Asia, with Japan’s Nikkei 225 and South Korea’s Kospi gaining 0.6% and 1.9% by the shut respectively.

Write to Joe Wallace at Joe.Wallace@wsj.com