What you need to know on Wall Street today
Welcome to Finance Insider, Business Insider's summary of the top stories of the past 24 hours.
The meteoric rise of bitcoin is rippling through financial markets, and not everyone is enjoying the ride.
Just ask the unfortunate souls who have been trying to short chip makers and learning the hard way that their share prices are closely linked to interest in bitcoin. The stocks of companies like Nvidia and Advanced Micro Devices, which make chips used to mine, or produce, bitcoin - a process that involves heaps of computers solving complex equations - have surged alongside the cryptocurrency, destroying the short positions.
Short sellers betting against those two companies have lost a combined $1.8 billion this year as Nvidia has skyrocketed by 57% and AMD has climbed by 16%, according to data provided by the financial analytics firm S3 Partners.
And the fallout is already beginning. The Dallas-based hedge fund Carlson Capital's $1 billion Black Diamond Thematic fund lost 14.2% this year through July, and it blamed bitcoin for the hit, according to a client update reviewed by Business Insider.
Elsewhere in markets news and views:
- A bunch of indicators are warning of "a break in the stock market"
- Bitcoin's explosive gains could spell good news for stocks
- Trump and Yellen could derail the stock market's hottest trade
- One of the stock market's biggest opportunities is being ignored
- MORGAN STANLEY: Warnings about a stock market crash are "out of whack" with reality
- Hedge funders are receiving death threats after shorting Chinese companies in Hong Kong
In other news, Blue Apron is spending more than $400 for every new customer. Netflix announced its first-ever acquisition. And Tesla is making a risky move by issuing $1.5 billion in debt
Lastly, here are 10 stylish watches you can buy for under $250. And guys can save hundreds on dress shirts with Business Insider's exclusive offer.
- A centenarian who starts her day with gentle exercise and loves walks shares 5 longevity tips, including staying single
- A couple accidentally shipped their cat in an Amazon return package. It arrived safely 6 days later, hundreds of miles away.
- Colon cancer rates are rising in young people. If you have two symptoms you should get a colonoscopy, a GI oncologist says.
- Having an regional accent can be bad for your interviews, especially an Indian one: study
- Dirty laundry? Major clothing companies like Zara and H&M under scrutiny for allegedly fuelling deforestation in Brazil
- 5 Best places to visit near Darjeeling
- Climate change could become main driver of biodiversity decline by mid-century: Study
- RBI initiates transition plan: Small finance banks to ascend to universal banking status
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market