Breakfast | Quantum Computing plummets: QUBT down 43%, IONQ down 39%

Market Overview

The S&P and Dow Jones closed higher after fluctuations, while the Nasdaq briefly fell 0.9% and closed slightly down. Several quantum computing stocks dropped over 40%, the chip index fell more than 1%, and hydrogen energy and nuclear power concept stocks generally fell over 9%. Automotive and luxury goods stocks also declined. NVIDIA rose 2.7% before turning negative.

U.S. ADP employment growth slowed, and the Federal Reserve's December minutes warned of rising inflation. Reports indicated that Trump is still considering pushing for tariffs, and the 10-year U.S. Treasury yield hit an eight-and-a-half-month high during the session, with the dollar approaching a two-year high.

The China concept index fell over 1% at its lowest. The China concept blue hats dropped over 25%, while Micro Multi-Hologram and Alliance Cloud Hologram fell about 30%. The offshore yuan briefly fell below 7.36 yuan.

UK bond yields reached their highest level in at least sixteen years.

Oil prices fell over 1%, while gold hit a four-week high. Bitcoin briefly fell below $94,000.

During the Asian session, A-shares rebounded sharply, with the Northbound 50 rising over 1%. Hong Kong stocks narrowed their losses, with Xiaomi down nearly 4%, and coking coal futures plummeted.

Federal Reserve Meeting Minutes Suggest Pause on Rate Cuts, General Consensus that Trump's Policies May Drive Inflation Up

Almost all attending decision-makers believe that the risks of rising inflation have increased, partly due to potential changes in trade and immigration policies.

Participants pointed out that recent inflation data exceeded expectations and the potential impacts of changes in trade and immigration policies indicate that the decline in inflation may take longer than previously expected, with many believing that the decline in inflation may temporarily stagnate or carry such risks.

Participants believe that the Fed has reached or is close to a suitable point to slow down easing; many believe that decision-making in the coming quarters needs to be cautious.

Most decision-makers support a 25 basis point rate cut in December, stating that it has been carefully weighed, but some believe that not cutting rates could be beneficial.

"The New Federal Reserve News Agency": The minutes suggest that Fed officials will temporarily keep interest rates unchanged, partly due to Trump's tariff plans, and they anticipate risks of inflation exceeding expectations.

U.S. Job Market Cooling

U.S. December "small non-farm" ADP employment unexpectedly slowed significantly to 122,000, the lowest level since August.

Meanwhile, wage growth has fallen to its lowest level since July 2021. The number of initial jobless claims in the U.S. last week was 201,000, the lowest since February 2024. Following the data release, U.S. Treasury yields fell back, with the 10-year Treasury yield earlier briefly breaking above 4.7%.

U.S. 30-Year Treasury Auction Rate Also Hits Highest Since 2007

The winning rate for this $22 billion 30-year U.S. Treasury auction was 4.913%, the highest since August 2007, compared to the winning rate of 4.535% on December 12. Financial blog Zerohedge commented that overall, it was a mediocre auction. After the auction results were released, the 10-year Treasury yield surged 4 basis points, again approaching the session high.

Quantum Computing Concept Stocks Plummeted After Jensen Huang's Remarks

Jensen Huang admitted on Tuesday that "very useful" quantum computers may still take decades to realize. Quantum Corporation fell 30.33%, D-Wave Quantum dropped 36.13%, Rigetti Computing fell 45.41%, and Quantum Computing dropped 43.34% IonQ fell 39%, and Weimi Hologram ADR fell 34.07%.

Constellation is close to a $30 billion acquisition of Calpine, becoming one of the largest mergers in the power generation sector!

On Wednesday, Bloomberg reported that Constellation Energy is in negotiations with Calpine's private equity investors regarding the acquisition. The deal could be valued at $30 billion (including debt), and is expected to become one of the largest mergers in the history of the power generation industry. The final announcement is expected to be released in the coming weeks, but negotiations may still face uncertainties.

Palantir fell 2.5%, marking the third consecutive trading day of decline

The transaction volume was $6.203 billion. The stock has declined for three consecutive trading days. Recently, Morgan Stanley downgraded the stock rating, warning that its share price faces further downside risks.

Bridgewater's asset management scale in China grew by 40% in one year, with a return rate exceeding 35% last year

According to Bloomberg, as of December 31 last year, the asset management scale of Bridgewater's private fund management department in Shanghai increased to over 55 billion yuan, thanks to investment returns and new capital inflows. Bridgewater's All Weather Plus onshore fund achieved a return rate exceeding 35% for the entire year, far surpassing its peers