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Biden tweaks rules for PPP loans, and Elon Musk sends bitcoin sliding: How the headlines can affect your money

Apple reclaims top spot in the smartphone wars.

Tesla CEO Elon Musk gestures as he arrives to visit the construction site of the future US electric car giant Tesla, on September 03, 2020 in Gruenheide near Berlin.
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Markets end the week mixed, and the White House tweaks the PPP program. Plus, bitcoin slips from a record after Elon Musk tweets its value seems "high." Here's how the headlines could affect your money.

Markets down after mixed week

The S&P ended Friday down 0.19%, while the Nasdaq rose 0.1% and the Dow gained just 1 point. It capped a mixed week for markets in which the S&P lost 0.71% and the Nasdaq 1.57%. Meanwhile, the Dow gained 0.11% for the week.

The Dow was up, and the Nasdaq and S&P were both down Monday morning.

PPP aid tweaked to reach smaller companies

President Joe Biden is changing the Paycheck Protection Program — the coronavirus relief program for small businesses — to reach smaller, minority-owned firms and sole proprietors left out during previous rounds of aid.

For two weeks starting on Wednesday, the Small Business Administration will only accept applications for PPP loans from applicants with fewer than 20 employees to ensure that they are not crowded out by larger employers. About $150 billion of PPP money is still available since the program's January relaunch, according to officials.

Suze Orman on how to use a second stimulus check

Video by Helen Zhao

Bitcoin value slips from record high

The value of bitcoin fell 7% Monday after Elon Musk tweeted over the weekend that the cryptocurrency's value seemed inflated. Last week, the cryptocurrency's price briefly exceeded $55,000, pushing its market value above $1 trillion.

Bitcoin's price has increased 360% during the last six months as more companies and investors have adopted its use, including most recently the Bank of New York Mellon and Musk's Tesla. The rise has also come as Musk has tweeted favorably about bitcoin and other cryptocurrencies. He briefly added "#bitcoin" to his Twitter bio at the end of January, after which the currency spiked in value by 20%.

Investors interested in the volatile crypto market should approach with caution. Only put in what you can live without for at least a decade and can afford to lose altogether, Erika Safran, a CFP and principal at Safran Wealth Advisors, told Grow.

"Invest in funds you won't need for at least a decade," says Safran, who is herself a crypto investor. "Why? You will either be very rich, or you won't be despondent about your losses. Prices are ridiculously volatile and unless your goal is to hold the assets forever, or a really long time, some investors may panic and incur large losses." 

Words you've heard: 5G

5G is the next generation technology standard for mobile networks that is being rolled out worldwide. It offers higher bandwidth and quicker download speeds. However, depending on your carrier, accessing that faster mobile network could require getting a new device and upgrading your data plan.

The iPhone 12, for example, is Apple's first smartphone to be 5G enabled, and analysts credit that phone's popularity during the holidays for the company's successful fourth quarter last year. Apple shipped nearly 80 million units of its products last quarter, surpassing all other smartphone makers including Samsung. It's the first time Apple has been on top since 2016.

Although the daily news can have an impact on your wallet, remember to take a long-term outlook when it comes to decisions on spending, saving, and investing.

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