Tech stock volatility ratio hits 23-year high

The ratio of the Nasdaq 100 Volatility Index ($VXN) to the S&P 500 Volatility Index ($VIX) has climbed to 1.7 points, the highest in 23 years. This marks the first time since 2018 that the ratio has exceeded 1.5 points.

By comparison, during the 2008 Financial Crisis, the metric peaked at around 1.6 points. Currently, $VXN stands at 28 points while $VIX is at 16 points — a 43% difference.

$VXN has remained above 20 points for five consecutive months, the longest such streak since the 2022 bear market, indicating that the market is pricing in severe volatility in tech stocks.