Why Quantum Computing Stock Is Skyrocketing Today
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Quantum Computing and other growth stocks are rallying today on hopes that the conflict between Israel and Iran could de-escalate.
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Oil prices have moved lower today, which is a good sign on the inflation front.
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Investors are betting that quantum computing technologies could be on the verge of an inflection point.
Quantum Computing (QUBT 27.58%) stock is seeing another day of explosive gains Monday. The company's share price was up 24% as of 3:30 p.m. ET, amid a 0.8% gain for the S&P 500 (^GSPC 0.85%) and a 1.4% gain for the Nasdaq Composite (^IXIC 1.44%).
The broader market is moving higher today following indications that recent military flare-ups between Israel and Iran could de-escalate, and many speculative growth stocks are seeing outsized gains. In addition to the broader trend, Quantum Computing stock has continued to benefit from a surge in excitement surrounding quantum technologies.
Image source: Getty Images.
Quantum Computing stock surges on hopeful outlook on Israel-Iran conflict
According to a recent Wall Street Journal report, Iran may be willing to restart negotiations about limiting its nuclear development program. The news follows missile strikes on Iran initiated by Israel last Friday and subsequent retaliatory exchanges between the countries.
Oil prices are falling today in conjunction with indications that there could be a de-escalation between Israel and Iran. Lowering oil prices has been a core component of the Trump administration's strategy to lower inflation, and investors are responding positively to the pricing trend today. If inflation continues to moderate, that would leave the door open for the Federal Reserve to cut interest rates this year -- which would likely be a positive catalyst for Quantum Computing and other speculative growth stocks.
What's next for Quantum Computing stock?
Quantum Computing stock has been on a massive winning streak lately, and its share price is now up 124% over the last month. The stock got a huge bullish kick last week after Nvidia CEO Jensen Huang said that quantum computing technologies are approaching an "inflection point."
If Huang is correct, Quantum Computing could be on the verge of a dramatic uptick in demand for its technologies and services. On the other hand, investors should keep in mind that the stock is still risky and trades at a hugely growth-dependent valuation.
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