Sunday, June 22, 2025

Quantum Computing Stocks Plunge: Is the Hype Over?

The New York stock market closed with mixed results, showing minimal fluctuations on January 8. The tech-heavy Nasdaq ended slightly lower, primarily due to quantum computing stocks plummeting by around 40%. / AP News
The New York stock market closed with mixed results, showing minimal fluctuations on January 8. The tech-heavy Nasdaq ended slightly lower, primarily due to quantum computing stocks plummeting by around 40%. / AP News

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.

Hot this week

Japan’s Steel Giant Takes Over US Steel: What It Means for American Workers

Nippon Steel acquires U.S. Steel for $14.1 billion, ensuring U.S. government oversight and maintaining its headquarters in Pittsburgh.

Trump’s Ultimatum to Iran Jolts Oil Prices into Unsteady Climb

Oil prices rose slightly as markets reacted to Trump's ultimatum to Iran, with WTI and Brent crude experiencing minor gains.

Wall Street Wobbles After Powell Says No Rush on Rate Cuts

U.S. markets closed mixed after the Fed maintained interest rates, with tech stocks like Tesla and Nvidia gaining amid cautious investor sentiment.

Apple Joins Google in Map Export Request, Vows Flexible Compliance

Apple seeks South Korean approval to export high-precision map data, offering to accommodate government demands unlike Google.

Wall Street Takes a Dive as Tensions Rise Over Iran

The New York stock market fell sharply due to rising tensions in the Middle East and declines in major tech and solar stocks.

Topics

Japan’s Steel Giant Takes Over US Steel: What It Means for American Workers

Nippon Steel acquires U.S. Steel for $14.1 billion, ensuring U.S. government oversight and maintaining its headquarters in Pittsburgh.

Trump’s Ultimatum to Iran Jolts Oil Prices into Unsteady Climb

Oil prices rose slightly as markets reacted to Trump's ultimatum to Iran, with WTI and Brent crude experiencing minor gains.

Wall Street Wobbles After Powell Says No Rush on Rate Cuts

U.S. markets closed mixed after the Fed maintained interest rates, with tech stocks like Tesla and Nvidia gaining amid cautious investor sentiment.

Apple Joins Google in Map Export Request, Vows Flexible Compliance

Apple seeks South Korean approval to export high-precision map data, offering to accommodate government demands unlike Google.

Wall Street Takes a Dive as Tensions Rise Over Iran

The New York stock market fell sharply due to rising tensions in the Middle East and declines in major tech and solar stocks.

Brent and WTI Climb Following Heightened Concerns Over Iran Conflict

Oil prices surged amid rising tensions in the Middle East, with fears of disruptions to Iranian oil exports following Trump's return.

Why Stablecoins Struggle to Compete with Credit Cards in America

Stablecoins lack consumer incentives compared to credit cards, limiting adoption despite potential in specific payment areas.

Wall Street Bounces Back: Stocks Rally Amid Iran-Israel Ceasefire Hopes

US stock indices rebounded on the 16th as reports emerged of Iran seeking negotiations amidst ongoing conflicts.

Related Articles