Options traders are pricing Nasdaq 100 risk at its largest premium over the S&P 500 since 2003, signaling heightened tech-sector uncertainty.
The Nasdaq 100’s implied volatility, tracked via the QQQ ETF, has surged to its widest premium over the S&P 500 since 2003. The divergence reflects growing investor concern about concentrated tech exposure amid shifting macroeconomic conditions.
Prior to this, the last comparable gap occurred during the early 2000s dot-com correction. Recent volatility spikes follow mixed earnings from megacap tech firms and rising Treasury yields, which have pressured growth stocks.
Markets have yet to show a sustained reaction, but the widening spread suggests traders are hedging against potential downside in high-flying tech names.