June 12 New York

Pinestone Investments

The DJIA fell by 36.30 points to 21235.67 while the S&P 500 Index declined by 2.38 points to 2429.39.  The Nasdaq Composite Index fell by 32.45 points to 6175.47.  Yield on the 10 year treasury rose by 0.01 points to 2.21%.  WTI crude futures rose 0.6 to settle at $46.08 a barrel after Saudi Arabia and Russia sought to reassure investors that coordinated production cuts by OPEC and its partners are draining a global glut.  The rate of the U.S. dollar to the yen was 109.94.  U.S. technology shares fell a second day after spreading to Asia and Europe on concern the group had risen too far too quickly.  The Nasdaq 100 Index registered its biggest two-day decline since September after closing Thursday with a 21 percent gain for the year.  Energy shares advanced, mitigating losses in the S&P 500 Index, as crude topped $46 a barrel. Losses in the S&P 500 Index were muted, with benchmark gauge down 0.1 percent.  Energy and phone shares advanced more than 0.6 percent.  Treasuries and the dollar were little changed two days before the Federal Reserve’s policy decision.  The sudden slide in tech stocks, which had helped send global equities to repeated record levels this year, blindslided many investors after markets largely brushed aside last week’s trio of risk events.  The question now is whether the drops represent merely a pause or a more fundamental problem in the U.S. stock bull market.  The Nasdaq 100 fell as much as 2 percent before paring losses into the close.  Meanwhile, in Washington the drama continues.  Attorney General Jeff Sessions will testify Tuesday to the Senete Intelligence Committee to answer questions about alleged Russian meddling in the 2016 presidential election.  And this week the Federal Reserve is set to lift interest rates, leading a pack of central banks that are mostly nodding in the direction of removing ultra-accommodative policy.  Gold futures posted the longest losing streak in three months as investors anticipate the Fed will raise its interest rates Wednesday.  Central banks in Japan, Switzerland and Britain are also scheduled to weigh in with policy decisions this week.

Kazuhide Matsuishi

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