According to CNBC, citing a Wall Street Journal report, the U.S. government plans to award about $2 billion in grants to nine firms in the quantum computing space, with government equity stakes included in the deals. The news sparked broad gains in quantum-related names and related tech plays, while several heavyweight names in other sectors moved on earnings, guidance and policy-linked themes.
Quantum stocks rallied in response. Rigetti Computing increased by more than 30%, D-Wave Quantum rose about 22%, and Quantum Computing climbed roughly 13%. Other quantum peers joined the move, with IonQ up around 9%, IBM advancing about 7%, and GlobalFoundries adding roughly 11%.
In parallel, rare earth stocks extended their rebound after a sell-off tied to export-control concerns in China. USA Rare Earth rose about 7% after announcing $19.3 million in funding from the U.S. Department of Energy to support pilot-scale separation development for rare earth elements. Critical Metals gained about 3% after signing a 15-year offtake agreement with Greenland’s Tanbreez deposit.
Among other movers, Bloom Energy jumped more than 12% following a partnership with Nebius, a European AI cloud provider seeking to alleviate power constraints in AI infrastructure. Nebius itself advanced more than 16%.
In the industrials space, Deere & Company reported better-than-expected second-quarter results. It posted earnings of $6.55 per share on net sales of $11.78 billion, topping the FactSet consensus of $5.70 per share and $11.54 billion in sales, and reaffirmed its full-year net income guidance. Despite the results, Deere’s shares fell nearly 8%.
Birkenstock surged more than 17% after announcing an acceleration of its stock repurchase program. CEO Oliver Reichert cited a “strong disconnect” between the market price and fundamentals amid recent volatility. The stock has faced a notable decline over the past year.
Spotify gained about 14% after outlining a stronger forecast at its first investor day since 2022, projecting medium-term revenue growth in the mid-teens and aiming to reach 1 billion subscribers.
Stellantis slid more than 3% after detailing plans to lift North American sales by 35% by 2030. The automaker outlined a broader five-year plan, including new crossovers under the Chrysler brand and a target to reach 60% of its lineup through Chrysler and Ram trucks.
Walmart trimmed roughly 7% after issuing a cautious outlook for the current period. The retailer’s first-quarter adjusted earnings per share aligned with estimates, while revenue beat expectations; the guidance ranged below what investors had anticipated.
Rocket Lab’s stock fell about 5% after SpaceX filed a prospectus to list the company on Nasdaq, with CNBC noting plans to begin a roadshow around June 8 for the deal. The news adds a new dynamic to a space-services segment already under intense scrutiny.
Nvidia reported that first-quarter revenue rose 85% year over year to about $81.62 billion, surpassing the Wall Street consensus of roughly $78.86 billion, but its shares traded down around 2% intraday as investors weighed the results against expectations for future quarters.
Intuit slid nearly 20% after revealing a 17% reduction in its workforce and reporting third-quarter revenue of $8.56 billion, just under the consensus estimate of about $8.61 billion. Kroger also edged lower, approximately 2%, as Bloomberg reported plans to pursue meaningful price reductions across its stores to compete with Walmart and Costco. Applied Digital jumped about 19% on news of a long-term lease agreement with a U.S.-based hyperscaler, signaling a notable expansion in data-center demand.
In the electric-vehicle space, Nio’s U.S.-listed shares rose about 2% after quarterly results beat expectations and the company guided 2Q deliveries between 110,000 and 115,000, representing a near-60% year-over-year jump.
Key takeaways
- Price moves: Quantum players led the session with double-digit gains; rare earth names posted solid intraday rebounds; several legacy tech and consumer names moved on earnings or outlooks.
- Catalyst: A Wall Street Journal report, referenced by CNBC, indicated the government plans to award $2 billion in grants to nine quantum-focused firms with accompanying equity stakes, a development that turbocharged sentiment around the sector.
- Implications for investors: The policy-sparked rally underscores potential government support for critical-technology supply chains and AI infrastructure, while moves in consumer and industrial names reflect a broader risk-on tone as earnings season unfolds.
What drove the move
The central catalyst was a disclosure, attributed to a Wall Street Journal report and relayed by CNBC, that the U.S. government intends to provide about $2 billion in grants to nine quantum-computing firms, with the government taking equity stakes in the ventures. Investors interpreted the plan as a meaningful vote of confidence in quantum hardware and related ecosystems, potentially accelerating commercialization timelines and supplier diversification for AI and defense applications.
Beyond the quantum space, stronger momentum in rare earths reflected ongoing concerns about securing domestic access to critical minerals, aided by government funding initiatives. The DOE’s support for processing and separation pilots signals a push to de-risk supply chains tied to magnets and other components essential for EVs, wind, and defense technologies.
Company-specific drivers also shaped the day. Bloom Energy benefited from a strategic tie-up with Nebius to address power constraints in AI infrastructure, while Birkenstock’s accelerated buyback and Spotify’s investor-day guidance provided narrative-driven lifts in consumer and growth equities. On the downside, macro or company-specific softness in Walmart, Intuit, and Stellantis limited gains in some corners of the market, even as other segments extended gains.
Market reaction
The session featured broad breadth in the rally, led by quantum and rare-earth plays, while large-cap tech and industrials saw mixed responses after reporting results or guiding expectations. The complex interplay between policy anticipation and company-specific outcomes produced a nuanced snapshot of investor risk appetite during the current earnings cycle.
What analysts are saying
Analysts emphasized that policy-driven support for quantum computing and critical minerals could alter the investment calculus for developers and suppliers in these ecosystems. While the WSJ-reported program could provide a substantial liquidity and equity framework, observers cautioned that policy timelines and execution risk remain relevant factors for evaluating longer-term upside. In the earnings space, analysts noted that Deere’s fundamentals looked solid on sales and margins, even as the stock’s risk-reward shifted after a strong quarterly print. Nvidia’s results reinforced the resilience of leading AI chip makers, though investors rotated into near-term concerns about forward guidance and multiple expansion.
Bigger picture
The day underscored how policy signals can recalibrate markets around specialized tech segments—especially quantum hardware and critical minerals—within a broader macro backdrop of inflation, rate expectations, and AI-driven growth narratives. As governments weigh domestic resilience and supply-chain security, investors are balancing the potential for policy-led catalysts against the usual earnings and growth trajectories that drive stock performance.
Looking ahead, investors will be watching for further details on the grant program, the pace of rollout, and any accompanying governance or compliance terms tied to government equity stakes. Earnings releases, guidance revisions, and macro data prints in the coming weeks are expected to shape how durable today’s rotation proves to be.
What to watch next: upcoming quarterly results from technology and industrial players, additional policy guidance on domestic semiconductor and critical-mineral support, and any updates on government-backed funding programs that could influence capital allocation in high-growth tech sectors.
