#MarketTurbulence

On August 14, 2025, markets retreated after the U.S. Producer Price Index (PPI) came in much better than expected, rising by 0.9% month-over-month and 3.3% year-over-year, compared to forecasts of 0.2% and 2.5%. This data dampened hopes for a rapid rate cut from 63 basis points to 58 basis points. Federal Reserve officials, including Mary Daly, emphasized caution. Stocks fell - with the Dow Jones down by 164 basis points, the S&P 500 down by 16 basis points, and the Nasdaq down by 22 basis points - while the price of Bitcoin dropped from around $124,000 to about $119,000, causing an intense sell-off in cryptocurrency assets. Rising bond yields, tariff concerns, and seasonal weakness in August heightened risk appetite, leading to a broad retreat in stock, cryptocurrency, and small-cap markets.