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- 📈 HSBC and IBM Crack Quantum
📈 HSBC and IBM Crack Quantum
When Quantum Physics Meets Quarterly Earnings: The First Real-World Proof That Tomorrow's Computing Can Boost Today's Bottom Line
Evelio Silvera
September 26, 2025
Good Morning…
Quantum computing just moved from science fiction to your portfolio's reality.
HSBC and IBM proved that quantum processors can deliver a 34% improvement in bond trading predictions using real market data—not in some distant future, but right now, with measurable profits that sent IBM stock soaring 5.8% in a single day.
🔎 Market Trends → US stocks end lower; data raises uncertainty for rate-cut outlook
🖥️ Market Movers from Fintech.tv → [WATCH] The Rise of Bots: Understanding the Dead Internet Theory and Human Verification
And now…
⏱️ Your 5-minute briefing for Friday, September 26, 2025:
MARKET BRIEF
Before the Open
As of market close 09/25/2025.
Pre-Market
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Fear & Greed
Markets in Review
Oracle Stumbles, But the Bull Still Breathes
S&P 500: -0.50% at 6,604.72. Nasdaq: -0.50% at 22,384.70. Dow: -0.38% at 45,947.32
The Big Picture:
Wall Street hit pause Thursday, weighed down by rising yields and a sharp pullback in tech — namely Oracle (ORCL), which slid 5%, raising questions about frothy valuations in the AI trade.
Investors aren't ditching the rally — they're simply recalibrating. With the 10-year Treasury yield touching 4.2%, risk appetite in high-growth tech stocks waned. But under the surface, solid economic data — jobless claims fell to 218,000 — reflects a labor market still in fighting shape.
Oil prices remained firm, with WTI crude hovering near $93, supported by tight global supply and anticipation of fourth-quarter demand. Commodities traders are watching the Personal Consumption Expenditures (PCE) index due Friday — the Fed’s inflation favorite.
Market Movers:
Oracle (ORCL): Downgraded by Rothschild & Co. Redburn, citing “AI hype overkill.” A 40% downside was predicted due to overestimated cloud growth.
Tesla (TSLA): Risk-off sentiment and higher yields hit EV names hard, especially those with premium valuations and margin compression concerns.
Intel (INTC): A rare bright spot. The chipmaker gained on optimism around potential Apple investment and momentum from recent strategic endorsements, including a $5B boost from Nvidia.
What They’re Saying:
“Tech is probably a little bit extended... I would not say the AI trade is over—but it’s clearly valuation.” — Jay Hatfield, CEO, Infrastructure Capital Advisors
WHAT WE’RE WATCHING
Events
Today: Bureau of Economic Analysis - Core Personal Consumption Expenditures (PCE) Price Index m/m - 8:30am
Why You Should Care: It’s the Federal Reserve’s primary inflation measure. Inflation is important to currency valuation because rising prices lead the central bank to raise interest rates out of respect for their inflation containment mandate.
Earnings Reports
Today: JinkoSolar, NeoVolta, Taylor Devices
Monday: Carnival Cruise Line, Vail Resorts, Jefferies
MARKET INSIGHTS
Leading News
Wall Street's Quantum Moment: When IBM's Heron Helped HSBC See Through Market Fog
Photo Credit: Carson Masterson
Why it matters:
In a world where milliseconds mean millions, quantum computing just proved it can give traders a real edge—not in some distant future, but today.
Zoom Out:
After years of breathless promises about quantum computing's potential, HSBC and IBM (IBM) finally delivered something Wall Street can bank on: a 34% improvement in bond price predictions using IBM's Heron quantum processor. This isn't theoretical physics anymore—it's applied mathematics with a profit motive.
The trial focused on over-the-counter bond markets, those opaque corners where institutional players trade without the transparency of public exchanges. Here, predicting whether a quoted price will attract a buyer is part science, part art, and—as it turns out—part quantum mechanics. HSBC's quantum-enhanced algorithms could spot patterns in market noise that classical computers simply missed.
For context, HSBC (HSBC) stock has climbed 41% this year while IBM jumped 5.8% on the news alone. That kind of market reaction suggests investors understand they're witnessing something more significant than a fancy science experiment.
Key Insights:
The Behavioral Finance Angle: Markets are messy precisely because they're driven by human emotions and imperfect information. Quantum computers excel at finding order in chaos—a skill that becomes exponentially valuable when traditional models hit complexity walls in volatile bond markets.
The Moat Question: IBM's quantum computers are available through cloud access today via their Qiskit platform, meaning this advantage won't remain exclusive to HSBC for long. The real winner may be whichever firm deploys quantum systems most effectively across their entire trading operation first.
Historical Precedent: Remember when electronic trading replaced floor traders, or when algorithmic strategies disrupted traditional analysis? Each wave created temporary advantages for early adopters before becoming table stakes. Quantum computing appears to be entering that same adoption curve.
Market Pulse:
"We now have a compelling example of how today's quantum technology can address real-world problems and provide a competitive edge." — Philip Intallura, HSBC Group Head of Quantum Technologies
Bull’s Take:
Quantum computing just graduated from lab curiosity to profit center. Smart investors should watch which financial firms—and quantum hardware providers—capture the most value as this technology scales beyond bond trading into derivatives, risk management, and portfolio optimization.
Market Stories of Note
Tesla's European Hiccup Masks Bigger Picture:
Tesla's 32% registration decline across Europe this year signals growing competition, but the EV market itself expanded 26% over the same period—suggesting Tesla's pain may be other automakers' opportunity. While political controversies and brand challenges create near-term headwinds, analysts still expect Tesla to beat Q3 delivery estimates as U.S. buyers rush to capture tax credits before they expire. The real test isn't whether Tesla can weather European market share losses, but whether its promised affordable model arrives soon enough to reclaim momentum in an increasingly crowded field.
Trump's TikTok Deal Unlocks Regulatory Knot:
This presidential intervention transforms what looked like a dead-end regulatory showdown into a structured exit for ByteDance while preserving TikTok's U.S. operations under American control. The $14 billion valuation creates immediate winners in Oracle, Silver Lake, and ByteDance's existing investors, who get to monetize their stakes while sidestepping a complete shutdown scenario. Smart money should watch whether this model becomes the template for resolving other China-linked tech disputes—regulatory clarity often creates more value than the underlying assets themselves.
SPONSORED
Company Spotlight
New to The Street TV Becomes One of Most Followed Financial News Platforms
In an era when legacy financial news brands struggle to engage digitally native audiences, New to The Street TV is quietly emerging as a powerhouse in financial media. With more than 3.4 million YouTube subscribers and a reach into 225 million homes weekly, it rivals established outlets in scale and influence.
Unlike traditional business journalism, the platform leans into CEO interviews, executive profiles, and in-depth dialogues with leaders of public companies, fintechs, and emerging enterprises. These conversations are often filmed in iconic settings—NYSE, NASDAQ, Times Square—lending visual gravitas and reinforcing trust.
By prioritizing leadership insights, corporate strategy, innovation, and personal stories, New to The Street TV is carving out a distinctive lane—less about breaking macroeconomic headlines, more about the people driving business. As audiences migrate from linear media to online platforms, its combination of high production values, constant publishing cadence, and executive access positions it for continued acceleration.
While challenges remain—differentiating editorial depth, maintaining audience retention, and monetizing growth—the platform’s ascent suggests a meaningful shift in how business news is consumed and delivered.
This is a paid advertisement for New to the Street, disclosures at https://www.newtothestreet.com/disclosures/
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