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Live Stock Financial Podcast. What are you watching on the market?
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Wednesday Market Falls, Quantum Computing Pulls Back Hard on Treasury Yield Crunch | Live Stock

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Kevin Travers joined discussion · Jan 9 00:06
Wednesday Market Falls, Quantum Computing Pulls Back Hard on Treasury Yield Crunch | Live Stock
Happy Wednesday, traders. It is another day of the new year that started with a downward-moving market. The S&P 500 is now below where it began the year after erasing its gains on Tuesday. Many cheaper meme-type stocks were falling dramatically Wednesday; you'll never guess why.
$eBay (EBAY.US)$ was climbing 10% after the online marketplace said it would post listings on Meta Platforms' Facebook Marketplace in the U.S., Germany, and France. It was the highest percentage gainer on the S&P 500.
$Sana Biotechnology (SANA.US)$ climbed 176%, at one point 200% Wednesday after news it had positive data from a type 1 diabetes study, where the firm used gene therapy on a patient without immunosuppression, with no ill effects. It was one of the highest climbers on the Nasdaq.
$Rigetti Computing (RGTI.US)$ fell a dramatic 45%, alongside other quantum computing favorites that have flown in the past weeks. Rigetti was going for less than $2 a share in November before news   $Alphabet-C (GOOG.US)$ of a super record-breaking Willow chip sent fledgling industry players like Rigetti into the stratosphere.
Within industry themes tracked by moomoo, quantum computing was falling, only held up by the inclusion of giants like Honeywell and Alphabet in the list to keep it from reaching outstanding lows.
Wednesday Market Falls, Quantum Computing Pulls Back Hard on Treasury Yield Crunch | Live Stock
Elsewhere in the economy,   $Crude Oil Futures(MAR5) (CLmain.US)$ stayed higher at 74. Gold and silver climbed, and shorter-term treasuries fell. $Bitcoin (BTC.CC)$ hovered at $95k.
Overall, the market was falling Wednesday morning. Just past 10:56 am ET the     $S&P 500 Index (.SPX.US)$ traded +0.10%, the         $Dow Jones Industrial Average (.DJI.US)$ fell 0.10%, and the     $Nasdaq Composite Index (.IXIC.US)$ climbed 0.43%.
Wednesday, Crude oil Inventory numbers showed firms stocked nearly one million fewer barrels of oil, and initial jobless claim numbers came in at a ten-month low.
So why were smaller volatile stocks like $Faraday Future Intelligent Electric Inc. (FFIE.US)$ and $SoundHound AI (SOUN.US)$ falling so much?  Partly because a 10-year Treasury note auction Tuesday brought in the highest action yields since 2007. Since September, treasury yields have climbed a percent despite the FOMC's rate cuts.
Treasuries from the U.S. government are the basis for most corporate debt and bond issuance, and more expensive money means companies that borrow a lot, like many more meme volatile stocks- have to pay more. Investors may move to discount their stock prices any time Treasuries rise or when the market suddenly notices Treasuries have risen.
Volatile stocks may pull back after climbing 900%, especially after something changes the industry's tune. Tuesday night, Nvidia Chief Jensen Huang said while talking to analysts that Quantum computing is great but will not be very useful for nearly two decades.
"If you said 15 years for very useful quantum computers, that would probably be on the early side," he said. "If you said 30, it's probably on the late side. But if you picked 20, I think many of us would believe it."
Yesterday, users were frustrated with $NVIDIA (NVDA.US)$'s fall from its record high, while Trump's talk of deregulation helped push bank stocks higher. Trump also said in TV appearances Tuesday he would continue to threaten allies like Canada and Greenland.
Traders, what do you think? What you watching on the stock market today? What is the herd following? Let me know in the comments below! $S&P 500 (LIST91326.US)$
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Kevin Travers
Moomoo News and Community Manager
Moo moo News and Community Manager, NJ Office. Fmr CNBC contributor, reporter/investor/trader Posts do not represent mm
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