What you need to know on Wall Street today
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
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