Israel attacked Iran’s capital early Friday, targeting the country’s nuclear program. The attacked also killed at least two top military officers. Iran vowed a “harsh” response. President Trump said that “the next already planned attacks” could be ”even more brutal,” and warned that Tehran “must make a deal, before there is nothing left.”

US wholesale prices rose modestly in May vs. the year-earlier level. The news follows Wednesday’s consumer price report for May that also revealed that inflationary pressures remain mild despite the increse in import tariffs, which economists still predict will soon start to show up in pricing.

US jobless claims held steady at an 8-month high last week. “There are early warning signs in the labor market,” said Navy Federal Credit Union’s chief economist, Heather Long. “If layoffs worsen this summer, it will heighten fears of a recession and consumer spending pullback.”

A closely watched auction of 30-year US Treasuries drew stronger-than-expected demand on Thursday, providing a degree of comfort against recent worries the market’s appetite for the US government’s long bond is fading amid concerns of a rising budget deficit. “The market continues to look for any evidence of a pullback in sponsorship for US Treasuries and this week’s pair of stop-throughs for 10s and 30s provided no such fodder for the bond vigilantes,” said Ian Lyngen, head of US rates strategy at BMO Capital Markets.