Yields moved higher following reports that President Donald Trump is making headway in his infrastructure plans. The president will likely push his legislative agenda forward in January by unveiling a plan to fix and develop infrastructure in the United States.
Trump campaigned heavily on the need to improve the country's infrastructure, an area in which he may find more support from Democrats. However, with a big tax cut in the pipeline, commentators have questioned whether a Republican Congress will be able to pass a spending plan.
Unemployment benefit claims dipped 2,000 to a seasonally adjusted 236,000 for the week ended Dec. 2, according to the Labor Department. This marks the third consecutive week of declines and suggests a rapid tightening of the labor market.
With the Bureau of Labor Statistics set to release its monthly report on the employment situation Friday, Wall Street will watching to see any changes in the already-low unemployment rate, which sits at 4.1 percent. Investors will also be watching for an increase in the hourly wage, a metric known for its relationship to inflation.
While new economic releases are expected to shake up sentiment Thursday, politics is also expected to keep investors on edge.
President Donald Trump and his administration announced Wednesday that the U.S. recognized Jerusalem as the capital of Israel and said that the American embassy would be moved there, even though officials recently said the relocation could take "years".
The announcement was met with condemnation worldwide, from Arabs and Muslims in the Middle East, to the United Nations and European Union; with the latter two institutions both voicing fears about what ramifications the decision would have on the peace-making process between Israel and Palestine.