Quantum Leaps & Rare Earth Rallies: Decoding the Post-Plunge Market Action

After a Friday plunge, stocks rebounded strongly on Monday. Below are five newsworthy market areas to monitor:Small Caps OutperformSmall caps and the Russell 2000 Index (IWM) were the strongest stocks during Monday’s rebound. IWM gained 2.78% for the session, nearly clawing back all of Friday’s 2.99% loss. We remain constructive on the space as IWM works on a multi-year breakout.Crypto Crashes Amid Overleverage, Rebounds MondayThe crypto market experienced its worst single-session market cap drop on Friday. Unfortunately, when President Trump shared his China message, many crypto investors were overleveraged and caught offside, causing a classic liquidation cascade in crypto and crypto proxies like the iShares Bitcoin ETF (IBIT).MP Materials Soars on Rare-Earth TensionsMP Materials (MP) has emerged as a big winner and a hedge of sorts for investors amid the China-US rivalry backdrop. Shares have broken out and are up over 30% this month amid the news about China’s rare-earth restrictions. Because the US government views rare earths as a national security pillar, MP is likely to continue to be a beneficiary as the US decouples from China and other hostile countries. Meanwhile, respected JPMorgan (JPM) CEO Jamie Dimon recently spoke about the need for the US to reduce reliance on foreign nations for rare earths and minerals.AI Energy Stocks Soar Amid Flurry of Positive NewsThe artificial intelligence race between China and the United States is in full swing. While the US is off to an early (albeit, small) lead in the AI race, it is far behind in the energy race. Energy is critical to AI because AI data centers require significant energy. Monday, Bloom Energy (BE) spiked 26% after it announced a partnership to provide Brookfield with $5 billion in on-site fuel cells to power AI data centers. Meanwhile, Navitas Semiconductor (NVTS), bolted 30% after the market close, following an announcement of a deal to help Nvidia (NVDA) power the next wave of AI factories. NVTS makes chips that help to make AI data centers more efficient.Quantum Computing Stocks Continue to SoarDespite Friday’s plunge, investors continued to pile into high-octane quantum computing stocks. QC stocks are the top 2025 performers. Rigetti Computing (RGTI) has rewarded shareholders with an astonishing 6,000% return thus far in 2025. Bottom LineDespite the Friday sell-off, Wall Street’s strongest industry themes reasserted themselves Monday. Quantum computing, rare earth, and AI energy stocks led the way.Radical New Technology Could Hand Investors Huge GainsQuantum Computing is the next technological revolution, and it could be even more advanced than AI.While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.See Top Quantum Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report JPMorgan Chase & Co. (JPM): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report MP Materials Corp. (MP): Free Stock Analysis Report Bloom Energy Corporation (BE): Free Stock Analysis Report Navitas Semiconductor Corporation (NVTS): Free Stock Analysis Report Rigetti Computing, Inc. (RGTI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks