#MarketTurbulence #MarketTurbulence WHY THE MARKET IS FALLING Yesterday

August 14, 2025, markets fell after the U.S. Producer Price Index (PPI) came in significantly higher than expected, rising by 0.9% month-over-month and 3.3% year-over-year compared to forecasts of 0.2% and 2.5%. The data buried hopes for a quick reduction in Federal Reserve interest rates, with expectations lowered to 58 basis points from 63 basis points. Fed officials, including Mary Daly, emphasized caution. Stocks fell — Dow -164, S&P 500 -16, Nasdaq -22 — while Bitcoin dropped from ~$124K to ~$119K, triggering liquidations of crypto assets. High bond yields, concerns over tariffs, and seasonal weakness in August heightened risk sentiments, causing a broad retreat in stocks, crypto, and small caps.