NEW YORK, Jan 31, 2026, 13:17 ET — The market has closed.
- Shares in quantum computing tumbled 7%–9% Friday, slipping well behind the broader tech-heavy Nasdaq.
- A hotter-than-expected U.S. producer-inflation reading, combined with President Donald Trump’s choice for the next Fed chair, nudged traders toward risk-off sentiment.
- Coming up: a House vote on federal funding set for Feb. 2, followed by the U.S. jobs report on Feb. 6.
Quantum computing stocks slid heading into the weekend, deepening a steep decline as investors pulled back from speculative tech amid fresh inflation concerns and shifts in U.S. policy cues.
This shift is significant since these are long-duration wagers—firms still developing systems and pushing early access—and their share prices can jump sharply when markets adjust interest rate expectations.
U.S. markets were closed Saturday, leaving the group by Monday’s open moving more as a macro proxy than individual stocks. Investors remain glued to Washington and upcoming data for the next catalyst.
IonQ dropped 7.5% to $39.98 on Friday. Rigetti Computing slid 8.4% to $18.17, while D-Wave Quantum lost 8.6% to close at $21.22. Quantum Computing Inc fell 9.0%, ending the day at $9.27, and Arqit Quantum dropped 8.9% to $20.32.
The broader backdrop was sour. The Nasdaq slipped 0.94% on Friday as traders digested Trump’s pick of former Federal Reserve Governor Kevin Warsh to replace Jerome Powell, mixed earnings from megacaps, and a hotter inflation report. “Markets are calibrating to Trump’s pick of Kevin Warsh … and the outlook for monetary policy,” said Michael Hans, chief investment officer at Citizens Wealth. (Reuters)
The inflation figure that drew the spotlight was the producer price index (PPI), which tracks prices businesses get for goods and services. It climbed 0.5% in December, well above the 0.2% forecast, Reuters reported, and showed a 3.0% increase year-on-year. Carl Weinberg, chief economist at High Frequency Economics, noted, “This report validates the pivot of the Fed away from labor market risks back toward price stability.” (Reuters)
Quantum stocks face a tough challenge. Their valuations hinge largely on revenue expected far down the line, so rising rates can swiftly shrink their multiples.
Friday brought no new sector-wide headlines to shake the risk-off mood. The group remained vulnerable after a month marked by sharp, headline-fueled swings.
IonQ, a closely followed name in the sector, is still absorbing the impact of its hardware move this week: it struck a deal to acquire chipmaker SkyWater Technology for roughly $1.8 billion, with the goal of boosting its internal manufacturing capacity. (Reuters)
The outlook can shift quickly. Should rates continue to climb—or if Warsh comes across as less dovish than some expect—smaller, cash-strapped tech firms may see fresh pressure, with dilution risks rising if they have to tap the capital markets.
Washington throws in another wild card. The U.S. government shut down at 12:01 a.m. Eastern on Saturday after Congress missed the funding deadline. The House won’t even consider the package until Monday. (Reuters)
The next major macro event is Friday’s Employment Situation report for January, set for 8:30 a.m. ET on Feb. 6. This snapshot of jobs and wages has the power to swiftly shift rate expectations. (Bls)
