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

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Jin Se Finance reported on July 3 that, according to CNBC, the recent rally in tech stocks has slowed, and traders' confidence in the market outlook has wavered. The volatility gap between the Nasdaq 100 and the S&P 500 has widened to its highest level since the 2008 financial crisis. The main reason is a significant increase in investors' willingness to buy Nasdaq put options, indicating rising concerns about a potential correction in tech stocks, especially the AI sector. On Thursday, the semiconductor ETF (SMH) fell more than 5%, further reflecting the waning momentum of previously popular tech stocks. Nonetheless, although the enthusiasm for call options has cooled, it remains at a relatively high level. Analysts believe that while the summer market is typically calm, tech stock volatility is expected to remain higher than the broader market.
NAS100-1.10%
SMH-4.54%
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