IBM recently helped HSBC pull off a quantum computing milestone. Now, IBM wants to further demonstrate quantum's use in finance. A joint study with Vanguard shows how quantum computing could shake up portfolio construction. IBM made headlines in the financial and tech sectors last week with a quantum-powered bond trade it helped HSBC execute. IBM stock jumped as markets reacted to a milestone use case for the cutting-edge tech. Now, the company has revealed the results of another partnership, indic ...

Quantum computing is still in its early innings, but investors aren't waiting on the sidelines. ...

Group 1 - The artificial intelligence (AI) revolution is driving investor interest in technologies that could lead to significant growth, with notable beneficiaries being GPU designers like Nvidia, software platforms like Palantir Technologies, and cloud infrastructure providers like Oracle [2] - Attention is increasingly shifting towards emerging applications, particularly quantum computing, which is seen as a frontier technology capable of solving complex problems beyond the capabilities of current supercomputers [3] - D-Wave Quantum has emerged as a key player in the quantum AI space, with its stock rising 216% this year, significantly outperforming major indices and tech companies [4] Group 2 - The rapid rise of D-Wave Quantum has sparked debate about whether it represents a transformational opportunity or a potential bubble, as quantum computing stocks begin to outpace traditional AI leaders [5] - Despite the excitement surrounding quantum AI, its practical utility remains limited, with the technology still largely in the research and development phase rather than achieving commercial success [6] - D-Wave Quantum generated only $22 million in revenue over the past year, with most sales occurring in a single quarter, indicating that market demand for quantum AI services is still inconsistent and sporadic [7]

Jeff Kilberg is founder and CEO of KKM Financial, a CNBC contributor. Jeff, it's great to speak with you and yeah, next week we're coming up on the end of the month. We're coming up on the end of the quarter.So, you think more volatility. There's a lot of inputs, Morgan, and great to join you here today. But we look at the VIX. Look at the VIX today down about 7%.Therefore, no one really seems in the options market that is Morgan, no one seems to be worried about the government shutting down. No one seems t ...

IBM just helped HSBC achieve a milestone in financial markets. IBM's trial with the bank demonstrated the applications of quantum tech in algorithmic bond trading. The move: IBM stock jumped as much as 5% on Thursday, extending a week of solid gains. Shares of the tech company have risen steadily in 2025, and are up 22% year-to-date. Why: On Thursday, HSBC revealed the results of its quantum computing-enabled algorithmic bond trading trial, powered by IBM's technology. The bank reported a 34% improv ...

Market Overview - U.S. stocks experienced a third consecutive loss, with the S&P 500 falling 0.5%, marking its longest losing streak in over a month. The Dow Jones Industrial Average dropped 173 points (0.4%), and the Nasdaq composite also sank 0.5% [1][13] Economic Indicators - Reports indicated that the U.S. economy may be stronger than previously anticipated, which could reduce the likelihood of the Federal Reserve cutting interest rates multiple times in the coming months [2][4] - A stronger economy could diminish the Fed's urgency to cut rates, especially given the risk of exacerbating already high inflation [4][5] - Recent economic data showed fewer unemployment claims, suggesting a slowdown in layoffs, and the economy grew faster than earlier estimates during the spring [6][7] Company Performance - CarMax's stock plummeted 20.1% after reporting weaker-than-expected profits and a decline in vehicle sales compared to the previous year [8] - Jabil's stock fell 6.7% despite reporting stronger profits driven by AI demand, as it had already seen a significant gain of 56.6% for the year [9] - Oracle's stock decreased by 5.6% after a significant rise earlier in the month due to AI-related contracts [10] - IBM's stock rose 5.2% following a successful quantum computing trial with HSBC, which improved trade prediction accuracy by up to 34% [11] - KB Home's stock fluctuated but ultimately dipped 0.6% after reporting stronger-than-expected profits, with the CEO noting easing mortgage rates could attract more buyers [12][13]

Core Insights - The article discusses the significant buying activity in Lithium Americas Corp (LAC) stock, driven by a short squeeze and the U.S. government's intention to acquire up to a 10% stake in the company [7] - It highlights the contrast between LAC and MP Materials Corp, emphasizing that while MP received government support and contracts, LAC does not have similar arrangements for lithium sales [7] - The overall market sentiment is described as extremely positive, with aggressive buying behavior observed, which is typically a contrary indicator suggesting caution for new strategic positions [7] Group 1: Company Overview - Lithium Americas Corp is a Canadian lithium miner and majority owner of the Thacker Pass mine in Nevada, with General Motors holding a minority stake [7] - The U.S. Department of Energy has previously agreed to provide Lithium Americas with a $2.2 billion loan, but this may lead to shareholder dilution as the government seeks equity [7] Group 2: Market Sentiment and Trends - The article notes that the current buying frenzy in LAC stock is indicative of extreme positive sentiment and high liquidity in the market [7] - It warns that such extreme sentiment often serves as a contrary indicator, suggesting that investors should be cautious about initiating new positions [7] - The article also mentions that insider selling is prevalent in stocks experiencing aggressive buying from the "momo crowd," indicating a potential disconnect between retail and institutional investor behavior [7] Group 3: Economic Indicators - Recent economic data shows strong performance, with Q2 GDP growth at 3.8%, durable orders up by 2.9%, and initial jobless claims at 218,000, all exceeding consensus expectations [7] - This strong economic backdrop challenges the narrative of weakness that some market participants have used to justify aggressive buying [7]

Core Insights - HSBC has achieved a significant milestone in quantum computing for finance, demonstrating its potential in algorithmic bond trading [2][3] - The collaboration with IBM has produced the first empirical evidence of quantum computers' value in solving real-world financial problems [2][3] Group 1: Quantum Computing Breakthrough - HSBC's Head of Quantum Technologies described the achievement as a "ground-breaking world-first in bond trading," indicating a tangible application of quantum computing in business [3] - The trial results showed a 34% improvement in predicting trade fulfillment at quoted prices compared to traditional classical techniques [5] Group 2: Quantum Computing Fundamentals - Quantum computing utilizes the principles of quantum mechanics to process information in a vastly more complex manner than classical systems [4] - This technology can tackle problems that are beyond the capabilities of even the most advanced classical supercomputers [4] Group 3: Industry Implications - The results highlight the potential of quantum computers to provide superior solutions for the financial services sector, surpassing standard classical methods [6] - Recent advancements in quantum hardware, cloud access, and software frameworks are driving financial institutions to move from research to operational pilots [7]

Company Insights - Intel shares surged following a report that the chipmaker is seeking an investment from Apple [3][4] - IBM shares gained after HSBC indicated that quantum computing could enhance predictability in bond trading outcomes [3] - Lithium Americas shares continued to rise on indications that the Trump administration is considering taking a stake in the lithium miner [3] Market Performance - Major U.S. equities indexes, including the Dow, S&P 500, and Nasdaq, experienced losses for the third consecutive day as investors reacted to various economic indicators [2][4] - CarMax was the worst-performing stock in the S&P 500 after reporting weaker-than-expected results, with CEO Bill Nash describing the quarter as "challenging" [2][4] - Oracle shares declined after Rothschild Redburn analysts initiated coverage with a "sell" rating, suggesting that the market is overestimating the company's revenue outlook [2]

HSBC Holdings Plc has achieved a "Sputnik moment" with the first real-world trial of quantum computing in bond markets, delivering up to a 34% improvement in predicting the probability of winning customer inquiries in the European corporate bond market. This marks the first empirical evidence of quantum computing solving real-world problems in algorithmic bond trading and could intensify the race among major banks to develop and deploy quantum computing in financial markets. "Working with a team from IBM, H ...