"New York Fed's Empire State Manufacturing Index Hits Record Low in January"
The New York Federal Reserve's Empire State business conditions index, a measure of manufacturing activity, plummeted to its lowest level since May 2020, raising concerns about the U.S. manufacturing sector. The index for new orders and shipments dropped significantly, while employment and hours worked contracted. Despite a slight increase in optimism, the surprise decline has sparked doubts about the sector's performance. Economists caution that the month-to-month swings in regional Fed manufacturing surveys are mostly noise, and the market reacted with stocks opening lower and the 10-year Treasury yield rising to 4% in early morning trading.