The three major New York stock market indices all rebounded on January 8, except for the Nasdaq.
The tech-heavy Nasdaq closed lower as quantum computing stocks dropped significantly.
The M7 big tech stocks also showed mixed results with minimal fluctuations.
Although the Federal Reserve’s minutes from the Federal Open Market Committee (FOMC) meeting held on December 17-18 suggested that any additional rate cuts this year would be approached cautiously and gradually, this news had little impact on the market.
Meanwhile, the New York stock and bond markets will be closed on January 9 for a day of mourning to commemorate former President Jimmy Carter.
Mixed Results
The Dow Jones Industrial Average and the S&P 500 ended the day in positive territory.
The Dow climbed 106.84 points (0.25%) to close at 42,635.20, while the S&P 500 gained 9.22 points (0.16%) to finish at 5,918.25.
However, the Nasdaq reversed course late in the session, slipping 10.80 points (0.06%) to close at 19,478.88.
The CBOE Volatility Index (VIX), Wall Street’s fear index, spiked over 9% during the session but later retreated, ultimately falling 0.12 points (0.67%) to 17.70.
Quantum Computing Stocks Plummet
Quantum computing stocks plummeted on Wednesday.
The sell-off was triggered by comments from Nvidia CEO Jensen Huang, who stated during an analyst day event that practical applications of quantum computing might not be realized for at least 20 years.
Huang suggested that while quantum computing could become practical within 15-30 years, the most likely timeframe is 20 years.
Quantum computing stocks soared last year as the potential successor to artificial intelligence (AI) but have declined steeply.
IonQ, which had surged 237% over the past year, plummeted $19.34 (39.00%) to $30.25. Rigetti, which saw a staggering 1,449% increase last year, fell $8.35 (45.41%) to $10.04.
Quantum Computing Inc. also dropped $7.58 (43.34%) to $9.91. Last year, the company recorded an impressive 1,712% increase.
While skepticism that quantum computing will not be practically usable shortly isn’t new, investors who were already uneasy about the rapid price increases reacted strongly to Huang’s comments, leading to a significant sell-off.
D-Wave Quantum CEO Alan Baratz disputed Huang’s forecast, asserting that it was “very wrong” and that their quantum computers are already commercialized. Despite this, D-Wave’s stock closed down $3.45 (36.13%) at $6.10.
Tesla Rebounds
The M7 big tech stocks showed mixed results.
Tesla closed $0.58 (0.15%) at $394.94, while Nvidia edged down $0.03 (0.02%) to $140.11.
Apple gained $0.49 (0.20%) to finish at $242.70, and Microsoft rose by $2.19 (0.52%) to close at $424.56.
Conversely, Alphabet fell $1.54 (0.79%) to $193.95, and Meta Platforms dropped $7.17 (1.16%) to close at $610.72.
Amazon finished slightly higher, gaining $0.02 (0.01%) to close at $222.13.
Oil Prices Retreat After Brief Rebound
Global oil prices declined.
Reports that U.S. President-elect Donald Trump might declare a national economic emergency and implement universal tariffs contributed to a stronger dollar, which typically put pressure on oil prices.
Brent crude, the international benchmark, saw its April contract drop $0.89 (1.15%) to close at $76.16 per barrel.
West Texas Intermediate (WTI), the U.S. benchmark, also fell, with the March contract down $0.93 (1.25%) to $73.32 per barrel.
