The largest volatility gap since 2008 signals a cooling in the tech bull market

Golden Ten Data, July 3 — According to CNBC, the recent rally in technology stocks has slowed, leading traders to become less confident about the market's outlook. The volatility gap between the Nasdaq 100 Index and the S&P 500 Index has widened to its highest level since the 2008 financial crisis. The main reason for this is a significant increase in investors’ willingness to buy Nasdaq put options, indicating growing worries about a potential correction in technology stocks, especially in the AI sector. On Thursday, the semiconductor ETF (SMH) fell by more than 5%, further reflecting a weakening momentum in previously popular tech stocks. Nevertheless, although enthusiasm for market call options has declined, it still remains at a relatively high level. Analysts believe that while the market is usually calmer during the summer, volatility in technology stocks is expected to remain higher than the broader market.