IBM stock rise: IBM stock rises over 5% after quantum computing trading trials with HSBC – what’s the experiment all about?

IBM shares went up more than 4% in New York after it announced its first experiment using quantum computers for bond trading with HSBC. The experiment helped improve predictions for bond orders in the European corporate bond market by up to 34%.

The trial combined normal computers and IBM quantum computers to make quote requests better in over-the-counter markets, where buyers and sellers trade directly with each other. Philip Intallura from HSBC said, “We now have a tangible example of how quantum computers can solve a real-world problem and deliver a competitive advantage”, as per the report by Market Screener.

Quantum computing in finance

IBM explained that the project shows how business knowledge, algorithm research, and advanced quantum processors can work together. HSBC announced this is the world’s first proof that quantum computers can give real benefits in financial markets, according to the report by Benzinga.

Corporate bond trading uses models to quickly price customer requests during competitive bidding. The quantum approach was better than normal computing at predicting quote prices. The trial used real trading data from European corporate bonds and ran on IBM’s quantum systems, including the Heron processor.

HSBC stock and market impact

By using quantum computing in models, the teams found hidden pricing signals that were buried in messy market data. HSBC said this shows quantum technology can make quote requests in over-the-counter bond markets faster and more accurately, giving trading advantages.

HSBC stock has gone up more than 41% this year, much higher than the S&P 100’s 15% gain, and the bank beat revenue and earnings expectations for three quarters in a row. This experiment happened soon after the Technology Prosperity Deal between the US and UK, which focuses on AI, semiconductors, telecom, and quantum computing. Leaders like Nvidia CEO Jensen Huang and OpenAI’s Sam Altman were involved, as per the report by Benzinga.UK Technology Secretary Liz Kendall said technologies like AI and quantum computing will change people’s lives. At the last check, HSBC shares were down 0.99% to $69.20 in premarket trading on Thursday.

FAQs

Q1. Why did IBM stock rise after the quantum trading trial?

IBM stock rose over 4% after its trial with HSBC showed quantum computers can improve bond trading predictions by up to 34%.

Q2. What was HSBC’s quantum computing experiment about?

HSBC and IBM used quantum computers to make bond trading more accurate and faster by predicting prices better in over-the-counter markets.