Quantum Stocks Fall Amid Rising Rate-Hike Odds
Quantum computing stocks are declining as traders price in a higher likelihood of another Federal Reserve rate hike. IonQ (NYSE:IONQ) is down 4% to $38.77, while Rigetti Computing (NASDAQ:RGTI) and D-Wave Quantum (NASDAQ:QBTS) each fall by about 2%. The broader market shows more resilience; the SPDR S&P 500 ETF Trust (SPY) drops just 0.6%, suggesting a shift away from speculative growth stocks toward safer assets. The rise in Treasury yields, currently near 4.8% on the 10-year note, is increasing discount rates for future cash flows—particularly impacting pre-revenue companies like those in quantum computing that rely heavily on long-term projections. The Defiance Quantum ETF (QTUM), which includes a diversified mix of related hardware and chip stocks, has cushioned some losses with a year-to-date gain of 36%. The market is reacting to rising crude oil prices and inflation concerns, pushing the probability of a Fed rate hike at its next meeting up to 60%. This environment highlights how sensitive high-beta sectors like quantum computing are to changes in interest rates.
Tickers: $IONQ $QBTS $QTUM $QUBT $RGTI $SPY
Topics: Fed policy interest rates quantum computing stock market decline