According to the latest economic data, new home sales significantly declined in May to 11.3% compared to the previous month, abruptly missing consensus of -0.2% . The steep decline in new home sales suggests a slowdown in the housing market that could be driven by high home prices, economic uncertainty, and rising mortgage rates.

Months' supply rose to 9.3 while Median new home price fell by 0.9% y/y to $417,400.

Only one sector is up today, Consumer Discretionary (XLY), which is holding up the rest of the market. The two big losers are Energy (XLE) and Financials (XLF).

In other news, the Japanese Yen continues to lose value as can be seen below with the exchange rate in Japanese Yen for 1 USD rising to over 160. This will result in higher cost of US goods in Japan and cheaper cost of Japanese goods in the USA, which could cause American companies with a large Japanese presence to suffer.

This has resulted in Japan raising interest rates for the first time in 17 years to 0 - 0.1% from its long-standing rate of -0.1%. There is a 33% expected chance of a further hike next month.