Philly Manufacturing Index Surges to 5-Year High; U.S. Jobless Claims Fall to May Low on July 16

According to the Philadelphia Federal Reserve, the regional manufacturing activity index jumped 31.1 points to 41.4 on July 16, far exceeding analyst expectations of 13.0 and hitting its highest level since April 2021. Meanwhile, the U.S. Labor Department reported that weekly jobless insurance claims for the week ending July 11 fell to 208,000, down 8,000 from the prior week and marking the lowest level since early May.

U.S. Treasury yields rose, with the 10-year note climbing 2.20 basis points to 4.5680%, as oil price concerns mounted. WTI crude approached $81 per barrel following reports that Iran has directed Yemeni Houthi forces to prepare for Red Sea closure if U.S. strikes hit Iran's power infrastructure, raising new concerns about Middle Eastern shipping routes.