What is causing markets to decline on Friday as US stocks stumble due to PPI data, leading Nasdaq to reach a one-month low?

U.S. stocks struggled to recover from a bearish market, particularly in the tech sector. The release of higher-than-expected producer inflation numbers in July dominated headlines and raised concerns about potential rate hikes by the Fed. Despite the possibility of the Fed holding rates steady in September, the rise in 2-year yields impacted rate-sensitive assets. The S&P 500 and Nasdaq 100 both experienced losses, while blue-chip stocks in the Dow Jones performed relatively well. Small caps in the Russell 2000 saw a slight increase, but overall experienced a weekly decline. Analysts noted that the lackluster market movement in August was due to rising bond yields. The SPDR S&P 500 ETF Trust, SPDR Dow Jones Industrial Average ETF, and Invesco QQQ Trust all saw fluctuating performance. Among individual stocks, Nvidia Corp. had a poor week, while Occidental Petroleum Corp. performed well in light of higher oil prices. The Michigan Consumer Sentiment Index slightly decreased, but remained significantly higher than the previous year. In the global markets, crude oil prices rose, Treasury yields increased, and the dollar strengthened. European equity indexes closed in the red, while gold and silver prices remained relatively stable.