By Alex Financials

Wall Street’s Record Streak Meets Hot Inflation

After hitting fresh record highs earlier in the week, U.S. stock markets stalled Thursday, August 14, 2025. The S&P 500 and Nasdaq Composite had just set new closing records for multiple days, fueled by hopes of an imminent Federal Reserve interest rate cut. But Thursday’s Producer Price Index (PPI) report upended the optimism: inflation at the factory gate surged 0.9% in July, sharply exceeding forecasts of a 0.2% gain and marking the biggest increase since February. The Dow Jones Industrial Average ($DJI) slipped 0.2%, the S&P 500 ($SPX) fell nearly 0.2%, and the Nasdaq ($IXIC) dropped over 0.1% as traders reassessed the likelihood of a September rate cut.

The Federal Reserve—Caught Between Data and Doves

Market participants had almost fully priced in a Fed rate cut at the September meeting following Tuesday’s tamer Consumer Price Index (CPI) data. Today’s hot PPI made traders dial back those expectations. “Markets are not factoring in anything beyond a 25 basis-point cut. A major change would likely only come if more signs point toward cooling in coming weeks,” noted one analyst. Treasury yields rose—benchmark 10-year yields hit 4.22%—and the CME FedWatch gauge shows diminished odds of more than one move before 2026.

Tech Giants Tread Water as Focus Shifts

Big tech names, including $NVDA (Nvidia), $AAPL (Apple), $GOOGL (Alphabet), $AMZN (Amazon), $TSLA (Tesla), and $META (Meta Platforms), saw modest pre-market gains below 0.5%, while $AVGO (Broadcom) slipped slightly. The group’s relatively flat performance caps a stretch of strong outperformance: Apple, for instance, is up over 10% in the past month following robust earnings and a $100 billion domestic investment push.

Earnings Movers: Deere, Cisco, JD.com, and More

• $DE (Deere & Co.) dropped 6% following a quarterly profit miss and lower full-year forecast, citing a 9% YoY drop in quarterly sales.

• $CSCO (Cisco Systems) reported better-than-expected quarterly earnings ($0.99 EPS, $14.67B revenue) and optimism driven by AI demand, but still traded 2% lower as cloud order growth was offset by concerns about tariffs and margins.

• $JD (JD.com) climbed marginally despite a 50% year-over-year drop in net income, as revenue topped estimates.

• $TPR (Tapestry), parent to Coach, fell 11% on disappointing results.

Elsewhere, $BIRK (Birkenstock) exceeded profit estimates, while $COHR (Coherent) and $CAVA (Cava Group) slid after missing sales targets.

Interest-Rate Sensitive Stocks React

Homebuilders, including $LEN (Lennar), $DHI (D.R. Horton), and $PHM (PulteGroup), initially gained on rate-cut hopes earlier in the week, but Thursday’s PPI-driven recalibration weighed on the sector. The bond market’s reaction—with Treasury yields climbing—suggests investors are bracing for higher borrowing costs for longer.

Bitcoin and Commodities: New Peaks and Steadiness

Bitcoin ($BTC-USD) reached a record high of $124,500 overnight before retreating slightly to $120,900. The U.S. dollar index hovered near a three-week low at 98.41, while West Texas Intermediate crude ($WTI) rebounded to $83 per barrel after a two-week slide.