Quantum Computing (QUBT 7.08%) stock recorded a day of big gains in Wednesday's trading. The tech specialist's share price rose 10.8% in a daily session that saw the S&P 500 rise 0.4% and the Nasdaq Composite jump 0.9%.
Quantum Computing's share price jumped today amid potentially bullish macroeconomic indicators and excitement surrounding its corner of the technology sector. New coverage from Cantor Fitzgerald actually suggested that the stock could have significant downside risk, but expectations that the broader quantum-computing space will continue to see big winners helped push the stock higher.
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Quantum Computing stock rises on macroeconomic dynamics
After substantial sell-offs in yesterday's trading, tech stocks bounded back today as macroeconomic indicators pointed in a generally bullish direction. While ADP's private-sector employment report that there was a net decline of 33,000 jobs in June fell far short of the average economist estimate's call for the addition of 110,000 jobs in the period, the weaker-than-anticipated numbers help support the case that the Federal Reserve will issue an interest rate cut this month. A rate cut could be a powerful bullish catalyst for Quantum Computing and other growth stocks.
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Adding another bullish catalyst, President Trump also announced that the U.S. had reached a trade agreement with Vietnam. While the immediate impact that this deal will have on Quantum Computing's business isn't exactly clear, moves toward stability on the trade front should generally support higher valuations for stocks.
What's next for Quantum Computing?
Picking winners and losers in the quantum-computing space involves a huge amount of guesswork. Cantor Fitzgerald issued new coverage on quantum-computing stocks including Rigetti Computing and IonQ today, and the action seemingly helped to power substantial valuation gains across the space. Quantum Computing stock recorded double-digit gains even as Cantor's forecasts suggested significant downside risk for the stock.
With its coverage today, Cantor set a one-year price target of $15 per share for Quantum Computing stock. As Wednesday's closing price, the investment firm's forecast implies potential downside of roughly 27%. While analyst takes on individual companies will likely continue to have some impact on valuations, broader sentiment surrounding quantum-computing plays could be the bigger factor until sales and earnings performance come to play a bigger role in stock prices in the category.
