Technology stocks popular among retail investors tumbled on Monday as investors took profits from last year’s winners and sold off speculative names amidst rising interest rates. Nvidia slumped 2%, Palantir dropped 4%, while Rigetti Computing plunged about 33%. The sell-off is also linked to a strong jobs report that cast doubt over the Federal Reserve’s rate-cutting plans for this year.
Industry experts attribute the decline to concerns about further rate cuts, with AXS Investments CEO Greg Bassuk stating that both Wall Street and Main Street are skeptical of any more Fed rate reductions. A strong jobs report on Friday reinforced these doubts, according to Bassuk.
The downturn follows a losing week for many key tech and quantum computing names, with some experts noting that leaders eventually fall during corrective phases. While the general market uptrend remains intact, it’s undergoing a reset, according to Truist co-chief investment officer Keith Lerner.
Quantum computing stocks also plummeted on Monday, including D-Wave (33%), IonQ (15%), and Apple and Meta Platforms (each down over 1%). The sell-off is partly due to commentary from Mark Zuckerberg that echoed Nvidia CEO Jensen Huang’s suggestion that useful quantum computers are decades away.
Source: https://www.cnbc.com/2025/01/13/theres-a-popular-tech-stock-washout-monday-as-palantir-nvidia-and-rigetti-computing-drop.html