Stocks traded low open on Thursday, with Dow Jones’ industrial average down nearly 200 points as the market responded to a higher than expected inflation report.
summary
- Stocks fell as producers’ price indexes became hotter than expected.
- The Dow fell sharply before showing a slight recovery, but Bitcoin slipped from the highest ever 124K
The Dow Jones industrial average fell by about 200 points or about 0.4% as Wall Street digested its latest producer price index data. The S&P 500 also reduced profits and slid about 0.3% to leave the record highs reached in the previous session. Overall sentiment regarding PPI inflation printing in July also fell by about 0.2% with the Nasdaq composite.
Cryptocurrency cut profits when stocks fell amid an injection of negative emotions. The volatility was sharp.
Crypto’s market capitalization fell by about 2.6% to just over $4 trillion, with Bitcoin (BTC) falling to around $118,500 and Ethereum (ETH) retreating to around $4,600. Compared to pre-PPI data prices, BTC reached an all-time high of $124,457 earlier in the day.
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Stock drops to Hot PPI
Wall Street’s response follows producer price index data in July, with PPI PPI rising by 0.9% per month, well above the consensus estimate of 0.2%. The inflation report also showed that producer prices rose 3.3% per year in July. This is the best since February 2025. Meanwhile, the “core” PPI, which excludes food and energy costs, rose to the level last seen in June 2022.
PPI 0.9% MOM, exp. 0.2%
PPI 3.3% previous year, Exp. 2.5%PPI core 0.9% mom, Exp. 0.2%
PPI core 3.7% previous year, Exp. 3.0%– ZeroHedge (@zerohedge) August 14, 2025
The S&P 500 and Nasdaq are approaching record highs, reaching as Wall Street celebrates corporate revenue and cooler than expected CPI. However, the latest inflation report on wholesale costs injects jitter into the market, and investors are concerned that PPI readings could lead to delaying interest rate cuts in September.
Despite the hotter data, Fed fund futures still show bullish outlook, with investors priced the odds of a Fed rate cut in September at 93%, down slightly from 94% on Wednesday. Traders monitoring other market factors helped the Dow recover some of its losses, but at the time of writing it was still down 98 points.
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