Tech Stocks Plummet as Quantum Leader Rigetti Drops 9% Amid Tariff Fears

How Trump’s Tariff Push Triggered a Market Slide

The announcement of steep tariffs by President Donald Trump has sent shockwaves through Wall Street, causing a sharp decline in technology stocks and dragging down Rigetti Computing, a frontrunner in the quantum computing industry, by nearly 9%. On March 3, 2025, the New York Stock Exchange witnessed a broad sell-off, with the Nasdaq tumbling 2.64%, the S&P 500 falling 1.76%, and the Dow slipping 1.48%. Rigetti Computing, often hailed as a top quantum computing stock to watch, closed the day at 7.70 dollars, reflecting an 8.98% drop, according to reports. This significant plunge aligns with a broader market reaction to Trump’s aggressive trade policies, which have sparked fears of rising inflation and delayed interest rate cuts by the Federal Reserve. While no company-specific news drove Rigetti’s decline, the ripple effects of macroeconomic uncertainty hit the tech sector hard, underscoring the vulnerability of growth-oriented firms like Rigetti in volatile markets. Over the past five days, the stock has shed 23.91%, and in the last month, it has plummeted 42.84%, raising questions about the resilience of quantum computing investments amid global trade tensions.

Trump’s tariff plan, targeting imports from countries like Canada, Mexico, and China, threatens to increase the cost of goods entering the U.S., a move that could stoke inflationary pressures and disrupt supply chains. For technology companies, particularly those in cutting-edge fields like quantum computing, this policy shift introduces layers of complexity. Rigetti Computing, known for its cloud-based quantum processors and innovative software solutions, relies on a global ecosystem of partnerships and resources. Although the company has not publicly disclosed immediate impacts from the tariffs, the broader market sell-off reflects investor concerns about how rising costs and economic uncertainty could hinder the growth trajectory of quantum computing stocks. The Nasdaq’s sharper decline compared to other indices highlights the tech sector’s sensitivity to interest rate expectations, as higher inflation might force the Fed to maintain or even raise rates, squeezing valuations for high-growth firms. This dynamic has amplified the downward pressure on Rigetti, despite its long-term potential as a leader in the quantum computing revolution.

Delving deeper into the market’s response, the absence of specific catalysts tied to Rigetti suggests its 9% drop was a byproduct of sector-wide panic rather than operational setbacks. The company, headquartered in Berkeley, California, has been steadily advancing its quantum hardware and software offerings, positioning itself as a key player in a nascent industry projected to transform fields like cryptography, materials science, and artificial intelligence. Yet, the steep declines over the past month signal that even promising quantum computing companies are not immune to macroeconomic headwinds. Investors tracking quantum computing stock performance might note that Rigetti’s trajectory mirrors that of other tech innovators during periods of uncertainty, where short-term market sentiment often overshadows long-term fundamentals. The tariff-induced sell-off has also reignited debates about the sustainability of tech valuations, particularly for firms like Rigetti that are still scaling their commercial footprint while navigating a high-cost research and development landscape.

Beyond the immediate market reaction, Trump’s trade policies could have lingering effects on the quantum computing sector. Increased tariffs on imported components or materials could raise operational costs for companies like Rigetti, which might depend on international suppliers for specialized hardware. Additionally, if trade tensions escalate, the collaborative nature of quantum computing research, often spanning multiple countries, could face disruptions. For investors searching for the best quantum computing stocks to buy, this introduces a layer of risk that tempers the excitement around Rigetti’s technological breakthroughs. The company’s stock price, which peaked earlier in its history as speculative interest surged, has now entered a volatile phase, with its 42.84% monthly drop reflecting broader concerns about tech sector stability. Still, some analysts argue that Rigetti’s long-term value proposition remains intact, given the transformative potential of quantum computing applications in a digital-first economy.

For those monitoring how to invest in quantum computing stocks, the current downturn might present a buying opportunity, though caution is warranted. The interplay between Trump’s tariff agenda and Federal Reserve policy will likely dictate the near-term direction of tech stocks, including Rigetti. If inflation accelerates and rate cuts are postponed, the pressure on growth stocks could persist, testing the patience of shareholders betting on quantum computing’s future. Conversely, any signs of policy moderation or resilience in Rigetti’s quarterly performance could spark a rebound, reinforcing its status as a quantum computing industry leader. As the market digests these developments, Rigetti Computing stands at a crossroads, its fate tied not only to its innovations but also to the unpredictable currents of global trade and monetary policy shaping the tech landscape in 2025.