Tesla CEO Elon Musk announced his company will no longer accept bitcoin as payment for its cars, citing “increasing use of fossil fuels” for its mining. The surprise reversal has triggered a sharp plunge for cryptocurrency and created trouble for other coins. U.S. stock futures traded mixed Thursday as investors awaited the latest reading on inflation. Dow Jones Industrial Average futures were lower by 100 points. The selling came ahead of the April producer price index, which is expected to show a 0.3% month-over-month increase, slowing from last month’s 0.5% gain.
CNN Business/Julia Horowitz
Elon Musk’s bitcoin reversal has sent the cryptocurrency market into a tailspin
Elon Musk’s surprise reversal on accepting bitcoin payments for Tesla (TSLA) cars has triggered a sharp plunge in the cryptocurrency — spelling trouble for other coins that have notched shocking returns in recent months.
What’s happening: Bitcoin prices have plummeted about 12% to less than $50,000 in the last 24 hours, according to Coindesk. The decline comes after Musk, Tesla’s CEO and a vocal bitcoin advocate, said his company was suspending plans to accept the cryptocurrency as payment for electric vehicles, citing its “high environmental cost.”
“We are concerned about rapidly increasing use of fossil fuels for bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel,” Musk said in a note posted on Twitter Wednesday. “Cryptocurrency is a good idea on many levels and we believe it has a promising future, but this cannot come at great cost to the environment.”
But if bitcoin prices have peaked for now, it could spark an exodus of speculators who were trying to make money off the frenzy.
“When bitcoin tops out and the bubble bursts, all those glory hunters will move away to another market,” Michaël van de Poppe, a crypto analyst and trader based in Amsterdam, told me.
Keeping reading, here.
Fox Business/Jonathan Garber
Stock futures mixed ahead of PPI report
U.S. stock futures traded mixed Thursday as investors awaited the latest reading on inflation.
Dow Jones Industrial Average futures were lower by 100 points, or 0.3%, while S&P 500 futures were little changed and Nasdaq 100 futures were higher by 0.49%.
The selling comes ahead of the April producer price index which is expected to show a 0.3% month over month increase, slowing from last month’s 0.5% gain. March’s 4.2% annual increase was the largest since October 2018.
In stocks, recently beaten down mega-cap tech names, including Apple Inc. and Microsoft Corp. saw some reprieve as the Nasdaq outperformed.
Elsewhere, Tesla CEO Elon Musk said his company will no longer accept bitcoin as payment for its vehicles due to the “increasing use of fossil fuels” for its mining. The electric-car maker will continue to hold its bitcoin and plans on using the cryptocurrency for transactions once mining becomes more sustainable.
Meanwhile, Boeing Co. received Federal Aviation Administration approval for an electrical fix to an issue that resulted in about 100 737 Max jets being grounded in early April.
In earnings, Bumble Inc. beat on both the top and bottom lines and guided above Wall Street expectations as more people used the dating app while riding out the COVID-19 pandemic from home.
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USA Today via Yahoo! Finance/Brett Molina and Nathan Bomey
Colonial Pipeline restarted operations, owners say ‘it will take several days’ for supply chain to return to normal
Colonial Pipeline said Wednesday “it initiated the restart” of operations after having to shut off the conduit following a cyberattack last week.
The pipeline was set to resume operations around 5 p.m. ET, but the company said “it will take several days for the product delivery supply chain to return to normal.” Colonial Pipeline Co. had to shut it down Saturday following a ransomware attack.
The shut-off of the pipeline, the primary fuel conduit serving the East Coast, spurred gasoline shortages in the southeastern and mid-Atlantic states.
Gas prices jumped just above $3 a gallon Wednesday, and many gas stations in the Southeast were out of fuel as panicking motorists rushed to fill up in the wake of the cyberattack on a crucial regional pipeline.
The national average price for gas is up 8 cents from the week ago to $3.01, according to the latest figures from AAA. That marks the first time national prices have topped $3 since 2014.
Following the shutdown, motorists have flocked to stations to top off their tanks, fearing shortages, even though pipeline officials have said they expect to “substantially” restore service by the end of the week, likely limiting most of the fallout.
The impact is largely concentrated in the Southeast, with station outages occurring throughout the region.
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