Tech Stock Volatility Gap Hits 23-Year High
The gap between the Nasdaq 100 volatility index (VXN) and the broader VIX has reached 12 points, the highest in at least 23 years, signaling extreme uncertainty in tech stocks relative to the market.
The divergence between tech stock volatility and the broader market has widened to a record extreme. The gap between the Nasdaq 100 Volatility Index ($VXN) and the CBOE Volatility Index ($VIX) now stands at 12 points, the largest spread in at least 23 years.
This gap has more than tripled since the start of May. Over that period, $VXN surged by 9 points (or +43%), while $VIX rose only 2 points (+9%).
For context, during the 2008 Financial Crisis the spread peaked at 7 points, and during the 2020 pandemic it reached 11 points. The current reading surpasses both, indicating that investors are pricing in significantly more uncertainty for technology stocks than for equities as a whole.
Source: The Kobeissi Letter