Key Takeaways
- US New Home Sales plummeted 7.3% in May to a seasonally adjusted rate of 580,000 units, significantly missing the 640,000 forecast as high mortgage rates sideline buyers.
- President Trump abruptly cancelled a housing bill signing ceremony, declaring he will stall all major legislation until Congress passes the SAVE America Act, which he termed a "national emergency."
- China's "LineShine" supercomputer has officially become the world's fastest, reaching 2.198 exaflops and ending nearly a decade of US dominance in high-performance computing.
- US Crude Oil Inventories fell by 6.088 million barrels for the week ending June 19, a much steeper draw than the 3.6 million expected, though gasoline and distillate stocks saw unexpected builds.
- The US Treasury removed several individuals from Russia-related sanctions as part of a broader "modernization" effort to prune outdated entries from the SDN list.
Housing Market Hits Resistance
The US housing market faced a double blow on Wednesday as both economic data and political maneuvering clouded the sector's outlook. New Home Sales (May) fell to 580,000, down from a revised 626,000 in April, marking a sharp 7.3% monthly decline. Analysts attribute the slump to the "new normal" of mortgage rates exceeding 6.4%, which has effectively neutralized traditional spring buying momentum.
Adding to the uncertainty, President Trump cancelled a scheduled news conference and signing for a bipartisan housing bill at the Capitol. Trump issued a statement via social media declaring that no further business would proceed until the SAVE America Act—a controversial voting and citizenship verification bill—is passed. This legislative freeze threatens to stall the 21st Century ROAD to Housing Act, which was intended to address national affordability challenges.
Energy Stocks See Mixed Inventory Signals
The Department of Energy (DoE) reported a significant 6.088 million barrel draw in commercial crude oil inventories, nearly double the anticipated decline. Despite the headline draw, oil prices remained under pressure as Gasoline inventories rose by 2.064 million barrels, defying estimates for a 1.1 million barrel draw.
Refinery utilization also slipped by 0.60%, suggesting a slight cooling in processing demand despite the summer driving season. Inventories at the Cushing, Oklahoma hub (USO) fell by 1.077 million barrels, continuing a trend of tightening supplies at the nation's primary storage point.
China Reclaims Supercomputing Crown
In a major shift for global technology competition, the TOP500 list announced that China's LineShine supercomputer is now the fastest in the world. Located at the National Supercomputing Centre in Shenzhen, the machine achieved 2.198 exaflops, overtaking the US-based El Capitan system.
Notably, LineShine reportedly utilizes domestically designed chips and standard microprocessors rather than the specialized GPUs common in AI-focused systems. This achievement underscores China's push for technological self-sufficiency amid ongoing US export restrictions on advanced semiconductor hardware.
Sanctions and Trade Updates
The US Treasury's Office of Foreign Assets Control (OFAC) updated its sanctions list on Wednesday, removing several individuals previously designated under Russia-related programs. Treasury Secretary Scott Bessent framed the move as part of a "sanctions modernization" initiative aimed at removing deceased individuals and defunct entities to ensure the list remains an effective tool.
On the domestic front, President Trump is set to host a White House dinner for farmers and ranchers this evening. The event is intended to celebrate recent trade and tax "wins" for the agricultural sector, even as the administration continues to clash with Congress over broader legislative priorities.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.