China State Fund Pumped $28 Billion Into ETFs as Turmoil Raged
The fund stuck with its favorite ETFs tracking broad gauges, with more than half of its flows going into those that follow the benchmark CSI 300 Index. The index, which suffered a one-day loss of around 7% on April 7 as Trump's tariff moves pushed global markets into a tailspin, ultimately ended the quarter higher than it started.
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Yahoo
10 minutes ago
- Yahoo
Could a Quantum Computing Bubble Be About to Pop? History Offers a Clear Answer
Key Points IonQ, Rigetti Computing, D-Wave Quantum, and Quantum Computing have reached valuation levels well beyond those seen during prior stock market bubbles. Each of these companies has recently raised capital through a series of equity offerings and stock issuances. These moves could suggest that the valuation levels for these businesses are not only abnormally high, but unsustainable. These 10 stocks could mint the next wave of millionaires › Last summer, companies such as IonQ (NYSE: IONQ), Rigetti Computing (NASDAQ: RGTI), D-Wave Quantum (NYSE: QBTS), and Quantum Computing (NASDAQ: QUBT) were unknown penny stocks. However, as quantum computing steadily made its way toward center stage in the artificial intelligence (AI) realm, each of these companies witnessed meteoric rises in their share prices. Over the last 12 months, IonQ stock has blasted higher by 517%, while Rigetti, D-Wave, and Quantum Computing have experienced surges of at least 1,500% as of this writing (July 21). With valuations reaching historically high levels, could investors be on the verge of witnessing a quantum computing bubble bursting? Is quantum computing in a bubble? The chart below illustrates valuation trends among popular quantum computing stocks on a price-to-sales (P/S) basis. As I outlined in a prior article, the quantum computing stocks above are trading at far higher P/S multiples compared to levels seen during the dot-com and COVID-19 stock bubbles. For example, during the internet boom in the late 1990s, stocks such as Amazon, Cisco, and Microsoft experienced peak P/S ratios in the range of 30x and 40x. Taking this a step further, popular COVID stocks such as Zoom Communications and Peloton saw P/S multiples top out at 124x and 20x, respectively. The big theme here is that IonQ, Rigetti, D-Wave, and Quantum Computing are each trading for valuation multiples that could be seen as historically high, even when compared to prior bubble events. With that said, other AI companies that are also exploring quantum computing -- such as Nvidia, Amazon, Alphabet, and Microsoft -- currently trade for much more reasonable valuation multiples when compared to the companies in the chart above. For this reason, I do not think the entire quantum computing landscape is at risk of experiencing a bubble-bursting event. However, IonQ and its peers have been dropping some breadcrumbs in recent months that lead me to think the smaller quantum computing players could be on the verge of a harsh sell-off. What's going on under the hood with quantum computing stocks? After some digging into certain filings with the Securities and Exchange Commission (SEC), I think IonQ, Rigetti, D-Wave, and Quantum Computing may be trying to signal some important things to investors: In February, IonQ announced that it planned to raise up to $500 million through a series of stock issuances. The company doubled down on its capital-raising ambitions more recently, offering 14,165,708 shares at a price of $55.49 -- raising nearly $1 billion in the process. In June, Rigetti raised $350 million in capital after completing an at-the-market (ATM) equity offering. Between June 11 and June 27, D-Wave Quantum raised $400 million through an ATM offering. Of note: This followed a prior raise of $150 million that occurred in January. In late June, Quantum Computing raised $200 million following the issuance of 14 million shares at an average price of $14.25. What's really going on here? With each of these quantum computing stocks trading near all-time highs, it appears to me that management is looking to take advantage of frothy market conditions. Quantum computing is a research-heavy, capital-intensive industry. Management at IonQ and its peers surely understand this, and so I see these capital raises as a calculated move to capitalize on inflated, overstretched valuations. Should you invest in quantum computing stocks? To me, any hint of a bubble surrounding IonQ and its smaller peers may already be in the process of bursting. Under the surface, the various stock issuances and equity offerings annotated above could suggest that management does not believe current price levels are sustainable. By using the dot-com and COVID bubbles as benchmarks, history would suggest that a major correction could be on the horizon for these small quantum computing stocks. Issuing stock to raise funds is not sustainable in the long run. Furthermore, consistently diluting shareholders through these offerings could call into question how these companies are allocating capital. In my eyes, if investors are seeking exposure to the quantum computing industry, they are best off exploring more diversified opportunities in big tech as opposed to the smaller, more speculative players analyzed in this piece. Trump's Tariffs Could Create $1.5 Trillion AI Gold Rush The Motley Fool's analysts are tracking a massive shift in U.S. tech. Over $1.5 trillion is already flowing into infrastructure, AI, and advanced manufacturing… and the number keeps climbing. Following a major tariff policy shift, a new AI Gold Rush is taking shape, and we think . It builds the tech infrastructure that Apple, OpenAI, and others suddenly can't live without. We just released a full write-up on this under-the-radar stock — and why now might be the exact moment to move. Continue » *Stock Advisor returns as of July 21, 2025 Adam Spatacco has positions in Alphabet, Amazon, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, Cisco Systems, Microsoft, Nvidia, Peloton Interactive, and Zoom Communications. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Could a Quantum Computing Bubble Be About to Pop? History Offers a Clear Answer was originally published by The Motley Fool
Fox News
12 minutes ago
- Fox News
Coming up on ‘Fox News Sunday': July 27th, 2025
This week on 'Fox News Sunday,' Shannon Bream speaks with Commerce Secretary Howard Lutnick about rising tariff tensions and more.
Yahoo
38 minutes ago
- Yahoo
Rising Fiscal Deficits Drive Billions Into Credit
(Bloomberg) -- Investors are showing signs of pulling money out of government bonds and plowing it into US and European company debt. Trump Awards $1.26 Billion Contract to Build Biggest Immigrant Detention Center in US The High Costs of Trump's 'Big Beautiful' New Car Loan Deduction Can This Bridge Ease the Troubled US-Canadian Relationship? Trump Administration Sues NYC Over Sanctuary City Policy If the moves persist, money managers could be shifting what for decades has been market orthodoxy: that nothing is safer than buying US government debt. But as US fiscal deficits climb, hurt by tax cuts and rising interest costs, the government may look to borrow more, and company debt may be the safer option. In June, money managers pulled $3.9 billion from Treasuries, while adding $10 billion to European and US investment-grade corporate debt, according to EPFR Global data. In July, investors have added another $13 billion to US high-grade corporates, the largest net client purchasing in data going back to 2015, according to a separate note from strategists at Barclays on Friday. Michaël Nizard, a portfolio manager at Edmond de Rothschild Asset Management, started making the switch from government into corporate debt at the end of last year and is holding on to the position. And in a note in the latest week, BlackRock Inc. strategists wrote, 'Credit has become a clear choice for quality.' To the extent this shift is happening, it's a slow change. The US doesn't have foreign currency debt, and can print more dollars as it needs to. When money managers were alarmed about tariff wars in April, US Treasuries still performed better than corporate bonds, even if prices for both sectors broadly fell. And foreign demand for Treasuries has remained resilient, with holdings climbing in May. But tightening corporate bond spreads in recent months may be a function of government debt looking relatively weaker now. The US government lost its last triple A grade in May, when Moody's Ratings cut it to Aa1. The bond rater pointed to factors including the widening deficit and the rising burden of interest, noting that payments will likely absorb around 30% of revenue by 2035, compared with 18% in 2024 and 9% in 2021. And US President Donald Trump's sweeping tax cut bill could add about $3.4 trillion to US deficits over the next decade, according to projections from the nonpartisan Congressional Budget Office. At the same time, corporate profits remain relatively strong, and although there are some early reasons for caution, high-grade companies are generally generating enough earnings to easily pay their interest now. More US companies are topping earnings estimates this reporting season than the same period last year. Valuations for company debt have been high recently, reflecting investor demand for the debt. High-grade US corporate spreads have averaged below 0.8 percentage point, or 80 basis points, in July through Thursday. That's far below the mean for the decade of about 120 basis points, according to Bloomberg index data. Spreads for euro-denominated high-grade corporates have averaged about 85 basis points in July, compared with about 123 basis points for the decade. To some money managers, high valuations for corporate credit are cause to be wary. Gershon Distenfeld, a fund manager at AllianceBernstein Holding LP, pared back a position that favored credit risk to rates risk earlier this month. Dominique Braeuninger, a multi-asset fund manager at Schroders Investment Management Ltd., agrees that corporate bond spreads are too tight to make them attractive. And even if BlackRock is generally positive on corporate debt, it is underweight long-term high-grade notes because spreads are tight, while being overweight short-term credit. But to many market observers, the world appears to be shifting, and it makes sense to hold more corporate debt now. 'What we've seen on the government fiscal side is not great news,' said Jason Simpson, a senior fixed income SPDR ETF strategist at State Street Investment Management. 'Corporates seem to be chugging along nicely.' Week In Review The US leveraged loan market saw more than $83 billion of launches in the latest week, the second busiest on record, including a $7.57 billion two-part deal from Medline that is set to be the market's biggest pricing since 2015. Repricings were an important driver of volume, representing about two thirds of the tranches, as companies look to cut borrowing costs. Many of the loans that were repriced had already been repriced before The return of billion-dollar M&A deals was supposed to be a boon for Wall Street's leveraged finance desks. It's turning out to be anything but, as private equity cuts them out of many of the most coveted deals. Lenders are demanding higher pricing from two European leveraged-loan borrowers, a rare sign of difficulty these days in the buoyant market for sub-investment grade debt. Chinese developer Country Garden Holdings Co. has agreed to some key restructuring terms a group of bank creditors had demanded, potentially easing the path for an overall debt deal. PepsiCo Inc. sold $4.7 billion of bonds in a pair of offerings that included the longest-dated euro-denominated corporate new issue since February. FedEx Corp. followed Pepsi with a rare two-part euro debt sale as some of its existing notes in the single currency near maturity. Meanwhile, General Electric Co. sold $2 billion of investment-grade bonds, as did Lockheed Martin Corp. Saks Global Enterprises launched a debt exchange after weeks of negotiations with creditors as its $600 million fresh financing takes shape. Separately, Walgreens Boots Alliance Inc. launched a multi-currency debt tender. Banks led by UBS Group and Citigroup have offloaded about $2 billion of debt to support Patient Square Capital's acquisition of Patterson Cos., reviving a deal more than three months after the bonds and loans got stuck on their books due to tariff turmoil in the market. Patterson received about $1 billion of orders for the $500 million junk-bond part of the sale. Dog walking service Wag! Group Co. won court permission to try to slash debt and hand control to senior creditor Retriever LLC as early as next month. On the Move Carlyle Group Inc. recruited Alex Chi, who was most recently co-head of Americas private credit at Goldman Sachs Group Inc.'s asset management arm, to lead its direct lending business. Chi will join Carlyle in early 2026. BMO Capital Markets hired Nii Dodoo as head of private credit financing. Dodoo joins from BTIG, where he was a managing director. Christina Chan, BNP Paribas' regional head of loan sales and head of corporate loan syndicate, Asia Pacific, has left the bank. Toronto-Dominion Bank's US credit trading unit has re-hired Sarah Classen from Goldman Sachs Group Inc. for its voice-trading business. Classen starts in mid-September as a director in TD Securities' global US dollar fixed income trading team, based in New York. Ares Management Corp. hired Sarah Cole as a partner and co-head of Ares Global Capital Solutions to bolster its partnerships with banks, insurance companies and across capital markets broadly. Hedge fund Squarepoint Capital LLP recruited Nathan Fabius, a former strategist at Goldman Sachs Group Inc., to cover Latin American debt. Fabius joined Squarepoint this month and is based in New York. Jefferies Financial Group Inc. plans to double the number of people on its credit secondaries team by the end of 2025, as demand has surged from investors who want to buy and sell existing exposure amid a dearth of fresh deals. Ardagh Group SA creditors are set to pay billionaire owner Paul Coulson as much as $300 million as part of a deal to hand over the keys to the company. Burning Man Is Burning Through Cash Confessions of a Laptop Farmer: How an American Helped North Korea's Wild Remote Worker Scheme It's Not Just Tokyo and Kyoto: Tourists Descend on Rural Japan Elon Musk's Empire Is Creaking Under the Strain of Elon Musk A Rebel Army Is Building a Rare-Earth Empire on China's Border ©2025 Bloomberg L.P. 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