The Dividend Cafe Thursday - August 14, 2025
Aug 14, 2025
David Bahnsen delivers a market update revealing that major indices closed flat despite some ups and downs. The Producer Price Index surprised with a 0.9% rise, leading to a higher 10-year yield at 4.28%. While goods prices remained low, the services sector showed more volatility. There's a hint at an in-depth future discussion on inflation trends. Additionally, oil prices saw a 2% uptick, and initial jobless claims remained stable at 224,000.
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Markets Closed Essentially Flat
- Major U.S. indices finished effectively flat despite intraday movement today.
- David L. Bahnsen highlights that the Dow, S&P, and Nasdaq all ended the day with negligible change.
PPI Surprise Drove Bond Yields Up
- A surprise PPI release pushed bond yields higher while equities ultimately shrugged it off.
- The 10-year yield rose four basis points to 4.28% after PPI surprised at +0.9% month-over-month.
Services, Not Goods, Pushed PPI Higher
- Producer prices rose broadly with both headline and core PPI at +0.9% for the month.
- Year-over-year core PPI climbed to 3.7%, with services driving the rise while goods remained subdued.