IBM Drops 7% to $306 as Quantum Profit-Taking and Rate Fears Hit Tech
Updated
Updated · tikr.com · Jun 4
IBM Drops 7% to $306 as Quantum Profit-Taking and Rate Fears Hit Tech
3 articles · Updated · tikr.com · Jun 4
Summary
IBM fell more than 7% Wednesday to $306 and slid another 4% after hours, with the drop large enough to weigh on the Dow Industrials.
Quantum stocks led the selloff as traders took profits after the prior session’s rally; Rigetti lost 10%, D-Wave 7% and IonQ 4%, pulling IBM down with the group.
Higher oil prices, rising Treasury yields and ADP’s 122,000 May jobs reading versus 110,000 expected reinforced bets that rates could stay higher for longer, a risk for IBM’s enterprise spending outlook.
IBM had jumped 6% two days earlier after winning a role in Nvidia’s Vera Rubin AI accelerator ecosystem, and the stock still sits about 5% higher this year near its $332 52-week high.
The pullback comes even as investors back IBM’s long-term quantum push, including a plan to spend more than $10 billion over five years and build a fault-tolerant quantum computer by 2029.