📈 Wall Street's $10B Quantum Bet

JPMorgan Chase just validated quantum computing as a legitimate portfolio consideration

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Good Morning…

When Wall Street's most powerful bank decides to write a $10 billion check for technology that doesn't yet generate meaningful revenue, you're witnessing either visionary capital allocation or institutional FOMO at scale—and smart investors need to understand which.

🔎 Market Trends → Wall Street ends sharply higher on Trump China comments

And now…

⏱️ Your daily briefing for Tuesday, October 14, 2025:

MARKET BRIEF
Before the Open

As of market close 10/13/2025

Pre-Market

  • Bloom Energy (BE) with a +27.0% gain, the strongest performer on the S&P 500

  • Fastenal (FAST) with a −7.5% drop, the weakest performer on the S&P 500

Fear & Greed

Markets in Review

Markets Rally After Trump Woods Backpedals on China — Bullish Cycle Reasserts Itself

The Dow jumped ~1.29%, and the S&P 500 climbed 1.56%, as investors pushed back hard against Friday’s trade-war meltdown.

The Big Picture:

Monday’s rebound was built on relief — not euphoria. Trump’s softened tone toward China deflated the risk of sweeping new tariffs, giving investors permission to “buy the dip.”
Leadership in this move came from technology and semiconductors, where companies caught in the tariff crosshairs leveraged strong fundamentals and deal announcements (e.g. Broadcom + OpenAI)

On the commodity side, oil recovered ~1.4% (Brent ~$63.65) after a brief overshoot last week.

Meanwhile, silver surged past $50/oz, testing a nominal 1980 record — a signal that industrial/monetary demand is baking in further upside.

This snap means much — but it doesn’t erase underlying risk. The government shutdown, erratic policy signals, and trade escalation remain wild cards. But for now, the bulls get the green light.

Market Movers:

  • Broadcom (AVGO) jumped ~10% after unveiling an AI-accelerator tie-up with OpenAI, giving investors conviction in its long game.

  • Tech / semis broadly followed — Nvidia (NVDA), ON Semiconductor, etc. led gains as tariff fears eased.

  • Silver / precious metals surged. Silver in particular is threading the needle between industrial use and a safe-asset hedge, making it a “hybrid play.”

  • Weak spots: Fastenal (FAST) tumbled after missing earnings. Consumer staples broadly lagged, weighed by staples names lacking cyclical upside

What They’re Saying:

“Trump seems to be telling investors they can safely buy the dip … we expect markets will accept this invitation.” — Tobin Marcus, Wolfe Research

WHAT WE’RE WATCHING
Events

Today’s events are scheduled but may be effected by the government shutdown

  • Today: Federal Reserve - Fed Chair Powell Speaks - 12:20pm

  • Why You Should Care: As head of the central bank, which controls short term interest rates, he has more influence over the nation's currency value than any other person. Traders scrutinize his public engagements as they are often used to drop subtle clues regarding future monetary policy;

Earnings Reports

  • Today: JPMorgan Chase, Johnson & Johnson, Wells Fargo, Goldman Sachs, BlackRock, Citi, Ericsson, Domino's

  • Tomorrow: ASML, Bank of America, Morgan Stanley, Abbott, Progressive, Prologis, PNC, Kinder Morgan, United,

MARKET INSIGHTS
Leading News 

Wall Street's $10 Billion Quantum Bet: Speculation Meets Institutional Capital

Photo Credit: Dynamic Wang

Why it matters:

When America's largest bank commits real capital to emerging technology rather than just analyst coverage, speculative investments start their long march toward legitimacy.

Zoom Out:

JPMorgan Chase isn't dabbling—the bank announced it will deploy up to $10 billion across quantum computing and 26 other strategic industries as part of its $1.5 trillion Security and Resiliency Initiative. The market responded predictably: Rigetti Computing (RGTI) jumped 25%, D-Wave Quantum (QBTS) surged 23%, and IONQ gained 16% on Monday.

Here's what separates this from typical tech euphoria: over the past month, Rigetti and D-Wave have climbed 175% and 130% respectively—a pattern suggesting something more durable than momentum traders chasing headlines. The participation of Google, Microsoft, and Amazon in gate-model quantum computing adds legitimacy, though not necessarily profitability.

The historical parallel isn't the internet bubble; it's closer to biotech in the 1990s—genuinely transformative science that will take decades to commercialize, with most companies failing but a few generating extraordinary returns.

Key Insights:

  • Valuation requires imagination, not spreadsheets: These companies trade on potential, not cash flows. Rigetti and IONQ quantum computers are accessible through Amazon Web Services' Braket platform, establishing distribution before revenue scales—smart, but insufficient for traditional valuation metrics.

  • National security creates patient capital: JPMorgan's initiative targets supply chain, defense, aerospace, and frontier technologies deemed critical to U.S. economic security. Government-backed sectors enjoy longer runways and more forgiving investors—both advantages and risks for shareholders.

  • The infrastructure exists, barely: Microsoft unveiled its Majorana 1 chip; Google announced its Willow chip. Real hardware from credible companies suggests we've moved beyond pure theory, though commercial applications remain frustratingly distant.

Market Pulse:

"It has become painfully clear that the United States has allowed itself to become too reliant on unreliable sources of critical minerals, products and manufacturing—all of which are essential for our national security" — Jamie Dimon, JPMorgan Chase CEO

Bull’s Take:

Institutional capital validates quantum computing as a legitimate allocation—in small doses. If you can afford to lose your entire stake and wait a decade for the payoff, these positions make sense. Everyone else should remember that the greatest investment returns often come from technologies you can't yet fully comprehend—and the greatest losses, too.

Market Stories of Note

Goldman Bets $965 Million That Private Beats Public—For Now:

Goldman Sachs is acquiring Industry Ventures and its $7 billion venture portfolio for up to $965 million, signaling Wall Street's acknowledgment that the IPO window may stay nailed shut longer than anyone anticipated. The deal matters because it reveals where sophisticated capital is flowing: toward secondary markets and alternative liquidity mechanisms that bypass traditional public offerings entirely. For retail investors, this underscores an uncomfortable truth—America's most promising growth companies are increasingly accessible only through private channels that require either substantial wealth or connections you probably don't have.

Oracle's $60 Billion Question: Faith, Math, or Madness?

Oracle co-CEO Clay Magouyrk confidently declared that OpenAI can handle $60 billion in annual cloud costs under their $300 billion five-year deal, citing ChatGPT's 800 million weekly users as evidence. The math tells a different story: OpenAI posted a $5 billion loss in 2024, meaning it would need to roughly sextuple revenue while achieving profitability just to cover this single expense. For investors riding Oracle's 84% gain this year, this encapsulates the eternal tension between visionary conviction and concentration risk—either OpenAI monetizes users at historic scale, or Oracle learns that popularity and profitability remain stubbornly different animals.

CRYPTO
Fear & Greed 

 

Headlines

  • Bitcoin rebounds to $114k as crypto market shows recovery (link)

  • Bitcoin Miners Lead Crypto Stock Bounce as OpenAI-Broadcom Deal Fuels AI Trade (link)

  • Ripple and Immunefi launch ‘Attackathon’ aimed at securing proposed XRPL lending protocol (link)

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