Market Overview - The VIX index has decreased by approximately 7%, indicating a lack of concern in the options market regarding potential government shutdowns or a pause in market rallies [1][2] - The S&P 500 has shown significant recovery, with a rise of nearly 35% from its low on April 8, suggesting a positive market sentiment [3] Cash Reserves and Market Dynamics - There is nearly $8 trillion in cash that may be deployed as the month and quarter end approaches, potentially driving market rallies despite forecasts of doom and gloom for Q4 [4] - The market is expected to continue moving higher, albeit not in a straight line, as various headwinds have been overcome [5] Sector Rotation and Technology - A rotation is observed among major tech stocks, with profit-taking in names like Nvidia and Microsoft, while companies like Google are gaining traction [6][7] - IBM is highlighted as a potential leader in quantum computing, with significant advancements expected by 2029, which could transform electronic transactions and the crypto landscape [8][10][11] Quantum Computing Developments - IBM has made strides in quantum computing, with a proof case demonstrating a 34% improvement in bond trading for HSBC, indicating practical applications of the technology [11] - The anticipated full capacity of quantum computing by 2029 is expected to significantly impact various industries [10] Asset Class Performance - Commodities, particularly crude oil, have shown strong performance, influenced by geopolitical factors [13] - The easing cycle in interest rates is expected to support US equities as markets reposition for Q4 [14][15]

Market Volatility & Investor Sentiment - The options market, as indicated by the VIX, suggests a lack of concern regarding potential government shutdowns or a pause in the market rally [2] - KKM Financial anticipates increased market volatility at the end of the month and quarter [1][4] - A significant amount of cash, approximately $8 trillion, is sitting on the sidelines, potentially fueling a market chase at month-end [4] - The melting VIX and underinvested shorts are expected to push the market higher, regardless of high valuations [15] Economic Factors & Fed Policy - The upward revision of GDP is viewed positively [2] - Inflation numbers present a conundrum for the Federal Reserve, which is now shifting its focus more towards unemployment [3] - The market rally can resume, with the S&P 500 having risen nearly 35% from its April 8th low of 4802 [3] - An anticipated easing cycle with one or two more rate cuts by the end of the year is expected to power US equities [14] Sector Rotation & Emerging Technologies - A rotation is occurring within the "Magnificent Seven" stocks, with profit-taking in names like Nvidia and Microsoft, and gains in names like Google [6][7] - Quantum computing, particularly IBM's advancements, is expected to be a significant theme in Q4 and 2026, potentially revolutionizing crypto and electronic transactions [8][9][10] - IBM's quantum computing test case with HSBC has shown a nearly 34% improvement on their bond trading desk [11]

Group 1: Market Overview - A potential government shutdown, earnings reports, and inflation data anticipation contributed to a rocky start to the week, yet all three major indexes achieved a third-straight record close on Monday [1] - Profit-taking led to the Dow Jones Industrial Average experiencing its first back-to-back daily drop in three weeks, despite cooler-than-expected jobs data and personal consumption expenditures (PCE) data for August showing core inflation in line with estimates [2] - The S&P 500 Index and Nasdaq Composite were set to end the week lower amid tariff updates, breaking their three-week win streaks [2] Group 2: Mining and Lithium Stocks - Gold prices have risen following the Federal Reserve's interest rate cut, bringing attention to mining companies such as Newmont (NEM), Pan American Silver (PAAS), and Freeport-McMoRan (FCX) [3] - Lithium stocks, including Lithium Americas (LAC) and Albemarle (ALB), gained attention after the Trump administration announced plans to pursue up to a 10% equity stake in Lithium Americas [3] Group 3: AI and Quantum Computing - AI and quantum computing companies gained prominence following OpenAI's deal with Nvidia, with potential beneficiaries including BigBear.ai (BBAI), SoundHound AI (SOUN), and Serve Robotics (SERV) [4] - Quantum Computing (QUBT) saw significant gains during Schaeffer's Expiration Week Countdown [4] Group 4: Company Ratings and Economic Data - Applied Materials (AMAT) received an upgrade to "overweight" from Morgan Stanley, indicating positive sentiment [5] - Goldman Sachs initiated coverage of Oklo (OKLO) with a "neutral" rating, highlighting operational risks [5] - October is expected to bring more economic data, with notable earnings reports from companies like Cal-Maine Foods (CALM), Carnival (CCL), Conagra Brands (CAG), Paychex (PYX), Vail Resorts (MTN), and particularly Nike (NKE) [6]

Some quantum stocks pulled back from all-time highs this week as investors rotated out of speculative names and into more defensive positions. Other quantum names maintained the upward momentum as the sector remained in the spotlight. QBTS stock is climbing. See the real-time chart here. Here's a look at the latest news in the quantum computing sector. Read Next: Cipher Mining Grabs $1.1 Billion for Expansion—Zero Interest, All Growth Power Bullish Coverage Analysts from BofA Securities and B. Riley updated ...

Core Insights - Quantum computing is a rapidly evolving technology with the potential to transform various industries, presenting unique investment opportunities in companies like Rigetti Computing (RGTI) and D-Wave Quantum (QBTS) aiming to establish a trillion-dollar market [1] Company Strategies - Rigetti is focused on superconducting qubits and a modular chiplet architecture, striving for universal, gate-based quantum machines, while D-Wave specializes in quantum annealing, targeting optimization problems for enterprise clients [2][7] - Rigetti's recent advancements include the Cepheus-1-36Q system, which has improved two-qubit error rates and achieved a median gate fidelity of approximately 99.5% [5][6] - D-Wave's Advantage2 system emphasizes higher qubit counts and improved performance, with a focus on immediate enterprise adoption and practical applications [8][12] Financial Performance - RGTI shares have increased by 110.3% year-to-date, while QBTS shares have surged by 213.5% [3] - The Zacks Consensus Estimate for RGTI's 2025 sales indicates a year-over-year decline of 19.65%, with a projected loss per share of 9 cents [14] - Conversely, QBTS is expected to see a year-over-year sales growth of 181.5% for 2025, with a projected loss per share of 24 cents [17] Market Positioning - Rigetti relies heavily on government contracts for revenue, recently securing a $5.8 million contract with the U.S. Air Force Research Laboratory [9] - D-Wave focuses on enterprise adoption, implementing pilot programs across various industries, which provides more immediate revenue visibility [10] - Rigetti's roadmap includes plans for a 100+ qubit system by the end of 2025 and a $250 million partnership with Quanta Computer to scale production [11] Investment Considerations - Rigetti holds a stronger growth and momentum profile, with a Growth Score of 'C' and a Momentum Score of 'A', while D-Wave has a Growth Score of 'F' and a Momentum Score of 'D' [21] - Both companies currently carry a Zacks Rank 3 (Hold), indicating that investors may want to wait for clearer catalysts before making investment decisions [21][22]

Group 1 - IBM stock increased by 1.6% after Morgan Stanley labeled it the "clear leader" in quantum computing [1] - HSBC successfully utilized IBM's quantum processor in a trial to optimize bond trading, marking a significant milestone in the financial services sector [3][4] - The use of IBM's quantum chip resulted in a 34% improvement in bond price predictions for HSBC, enhancing their trading efficiency [4][7] Group 2 - Improved accuracy in bond price predictions is expected to lead to higher profits for HSBC, which is beneficial for both HSBC and IBM [5] - The development signifies a promising future for quantum computing in financial services, suggesting that profitability for quantum stocks may be closer than anticipated [5]

Core Insights - The fusion of artificial intelligence (AI) and quantum computing is anticipated to generate trillions of dollars in economic value over the coming decades [2][9] - Nvidia and Alphabet are positioning themselves as leaders in the integration of AI and quantum computing technologies [2] Nvidia: GPUs, CUDA, and Infrastructure - Nvidia's dominance in the GPU market has been pivotal in the AI revolution, with its chips serving as the backbone for generative AI development [3] - The company is expanding its ambitions beyond just supplying accelerators for large language models (LLMs) and is laying the groundwork for a significant role in quantum computing [3][5] - Nvidia's CUDA software architecture is designed to connect classical computing systems with quantum-inspired research, with its CUDA quantum (CUDA-Q) platform already utilized by academic institutions and integrated with developers like IonQ and Rigetti Computing [4][5] Alphabet: Willow, Cirq, and DeepMind - Alphabet is making direct advancements in quantum computing through its Google Quantum division [7] - The company focuses on Willow, a processor aimed at efficiently scaling quantum workloads, and Cirq, an open-source framework for developing quantum algorithms on Google's infrastructure [8] - Alphabet's internal research lab, DeepMind, allows for rapid testing and refinement of quantum technologies, providing a unique advantage [8]

Core Insights - Quantum Computing Inc. (NASDAQ: QUBT) experienced a stock price increase of over 13% in early trading, later stabilizing at a 2% gain [1][3] Group 1: Stock Offering and Demand - QCi announced a $500 million stock offering for private investors, which was oversubscribed, indicating high demand [3] - The average price for the shares sold in the offering was $18.61, while the current trading price exceeds $21 [3] Group 2: Stock Dilution and Financial Health - The stock offering resulted in the issuance of 26.9 million new shares, increasing the total share count from 186.8 million to 213.7 million, leading to a 14.4% dilution for existing shareholders [4] - Despite the dilution, QCi's cash reserves have increased to $850 million, which is expected to sustain the company for years, even with a projected cash burn of $17 million next year [5][6] Group 3: Analyst Sentiment - Current analysts do not predict profitability for QCi in the foreseeable future [5] - The Motley Fool Stock Advisor has identified ten other stocks as better investment opportunities than Quantum Computing [7]

Group 1 - D-Wave Quantum Inc. (NYSE:QBTS) has seen a significant stock increase of 230% for the year, reaching a 52-week high, but it may take time for the business to truly take off [1] - The company provides quantum computing systems, software, and cloud services, including the Advantage line of computers, Ocean developer tools, and the Leap platform with hybrid solvers [1] - Positive developments in the quantum computing sector, such as IONQ's Memorandum of Understanding with the Department of Energy, could potentially benefit D-Wave and other companies in the industry [1] Group 2 - Despite the potential of D-Wave Quantum as an investment, certain AI stocks are considered to offer greater upside potential and less downside risk [1]

Group 1 - IonQ, Inc. (NYSE:IONQ) is recognized for its development of quantum computers and networks, providing access through major cloud platforms and its own service [2] - The stock has increased by 77% this year, indicating aggressive market performance despite ongoing financial losses [1] - Jim Cramer has expressed a cautious view on IonQ, labeling it as "too speculative" and highlighting its significant financial losses [2] Group 2 - Comparatively, certain AI stocks are perceived to offer greater upside potential with less downside risk than IonQ [2] - D-Wave Quantum (QBTS) received a bullish recommendation, resulting in a 13.78% stock price increase [2]