#MarketTurbulence WHY MARKET DUMP Yesterday

On August 14, 2025, markets dumped after the U.S. Producer Price Index (PPI) came in far hotter than expected, rising 0.9% monthly and 3.3% yearly vs. forecasts of 0.2% and 2.5%. The data crushed hopes for swift Federal Reserve rate cuts, with expectations dropping to 58 bps from 63 bps. Fed officials, including Mary Daly, stressed caution. Stocks fell — Dow -164, S&P 500 -16, Nasdaq -22 — while Bitcoin slid from ~$124K to ~$119K, triggering crypto liquidations. High Treasury yields, tariff worries, and August’s seasonal weakness fueled risk-off sentiment, sending equities, crypto, and small caps into broad retreat.