The Fed’s preferred inflation gauge confirmed on May 28 what the trend has been saying for months: core PCE rose to 3.3% year-over-year in April, up from 3.2% in March, up from 3.0% in February. No shock, no surprise — just another step in the wrong direction. For quantum computing stocks, which are speculative, unprofitable, and priced entirely on long-dated future cash flows, this is not a neutral data point. It is another brick in the wall bearing down on their valuations.

The Setup

Four quantum computing pure-plays — D-Wave Quantum (QBTS), Rigetti Computing (RGTI), Quantum Computing Inc. (QUBT), and IonQ (IONQ) — closed Thursday’s session up 33%, 30%, 19%, and 12% respectively on a single catalyst: a Department of Commerce announcement of $2.013 billion in CHIPS Act letters of intent across nine quantum firms. QBTS and RGTI each received LOIs of up to $100 million. QUBT and IONQ received nothing. All four moved as a single basket.