| The US launched airstrikes against Iran-backed militias in Syria and Iraq in retaliation for a drone attack that killed three US soldiers last week, marking a fresh escalation as conflict continues to spread across the Middle East. The US military said it struck 85 targets linked to Iran’s Islamic Revolutionary Guards Corps’ Quds Force and affiliated groups. President Joe Biden, who attended the transfer of the US soldiers’ remains on Friday in Dover, Delaware, approved the strikes. The assault, said to include 125 precision-guided munitions, had been seen as all but inevitable after the Jan. 28 drone attack on a US base on the Jordanian border with Syria and Iraq. The Pentagon said the three Army reservists were killed in their living quarters and more than 30 service members were wounded in the drone strike. US officials had since warned of a “multi-tiered” response and said the initial retaliation would only be the beginning. “Our response began today,” Biden said in a statement. “It will continue at times and places of our choosing.” —David E. Rovella For months, jobs data have pointed to a gradually cooling labor market across the US, which along with receding inflation helped fuel bets that the Federal Reserve would start cutting interest rates early in 2024. Friday’s blockbuster employment data turned that narrative upside down. US companies boosted payrolls in January by 353,000, the most in a year. December’s hiring figure also received a hefty upward revision. Taken together, the numbers suggest a re-acceleration that’s likely to delay any rate cuts for the time being. “It certainly justifies the Fed staying on hold,” said Kathy Jones, Charles Schwab’s chief fixed-income strategist. “The economy is strong enough to generate a high level of jobs.” But when it comes to the stock market, the doubters are out there—with many pointing to the dot-com bubble a few decades back. The rush into technology stocks is resembling the bubble of 1999, reflecting an assumption that the economy will perform strongly despite tighter monetary policy, according to Bank of America strategists led by Michael Hartnett. They noted that 75% of investors expect a soft landing and 20% a no-landing scenario. Yet, while a soft landing should support a broader range of equities, the “Magnificent Seven” accounted for 45% of the S&P 500’s return in January, reflecting a “leaning toward no landing/bubble,” he said. Brian Moynihan’s total compensation as chief executive of Bank of America declined 3% to $29 million for 2023, a year in which profit fell and the firm’s shares performed the worst among its biggest rivals. The board granted Moynihan $1.5 million in salary and $27.5 million in stock-based incentive awards, the Charlotte, North Carolina-based lender said Friday in a filing. A year ago, Moynihan’s compensation was cut 6.3% to $30 million after earnings tumbled and the shares sank.  Brian Moynihan Photographer: Hollie Adams/Bloomberg Investors concerned about the surprise loss and dividend cut at New York Community Bancorp this week have dragged down the shares of other US regional banks that also have significant exposure to commercial-property loans. Among those taking a big hit was Valley National Bancorp, which slipped 14% in the two days after NYCB reported fourth-quarter results that included $185 million of net charge-offs. It was only a couple of years back that Facebook-owner Meta suffered the single biggest market value destruction in stock-market history. But the company has come a long way, cheering shareholders last night with yet another impressive quarterly earnings report as the social media giant focuses on cutting back costs and shoring up billions in profits. On Friday, markets rewarded them. The stock rose 20% Friday to close at an all-time high of $474.99 per share. The gain added $197 billion to its market capitalization, the biggest single-session market value addition, eclipsing the $190 billion gains made by Apple and Amazon in 2022.  Buyers in Canada are starting to venture back into the housing market, looking to get ahead of any possible shopping frenzy spurred by expected rate cuts from the Bank of Canada. An unusual sales rally in December has stoked speculation that the Canadian housing market may start to heat up even more. With prices still soft as the central bank signals that it’s done raising its benchmark rate, buyers are trying to find the best time to purchase property before more competition floods in. Turkey’s President Recep Tayyip Erdogan appointed Fatih Karahan as the new central bank governor, removing Hafize Gaye Erkan from the role. Karahan was already a deputy governor and part of the rate-setting Monetary Policy Committee since July 2023. Karahan’s appointment as governor signals that a policy pivot, spearheaded by Finance Minister Mehmet Simsek and Gaye Erkan since June, will continue.  Fatih Karahan Source: Central Bank of the Republic of Turkey The famous couple is getting ready for a monumental few days, with millions eager to follow along. Travis Kelce’s Kansas City Chiefs are headed to the Super Bowl just as Taylor Swift kicks off the next leg of her Eras Tour in Japan. The big game against the San Francisco 49ers will take place Feb. 11 in Las Vegas, only a day after Swift finishes up a four-night run at the Tokyo Dome. There are rumors Swift will try and make it back for the big game, but there’s also nothing stopping you from seeing both events. It can be done—for a price.  Travis Kelce and Taylor Swift Photographer: Patrick Smith/Getty Images Get the Bloomberg Evening Briefing: If you were forwarded this newsletter, sign up here to receive Bloomberg’s flagship briefing in your mailbox daily—along with our Weekend Reading edition on Saturdays. | 
