Fed nips the quantum computing bubble in the bud

The latest speculative trading theme to grip the market — a bet on so-called quantum computing firms — is taking a thorough thwacking Thursday, in a sign that the Fed’s hawkish rate cut yesterday has becalmed some of the wildest animal spirits driving stock prices.

Short seller Citron Research’s steady stream of skepticism on the sector may have played a role too. But it seems that it was the shift from the Fed toward inflation worries that really dropped the hammer.

Rigetti Computing, D-Wave Quantum, and Quantum Computing are all facing intense selling pressure, while peer IonQ is holding up fairly well.