The US tech sector is going through one of its most volatile periods in history, with the Nasdaq 100 to S&P 500 volatility ratio hitting a 23-year high.

BlockBeats News, July 9th, The Kobeissi Letter stated that the tech sector is going through one of the most volatile periods in history. The Nasdaq 100 Volatility Index (VXN) to the S&P 500 Volatility Index (VIX) ratio has risen to 1.7, the highest level in 23 years. This is also the first time since 2018 that this ratio has broken above 1.5. For comparison, during the 2008 financial crisis, this ratio peaked at around 1.6.

The current VXN is at 28 points, while the VIX is at 16 points, making the latter 43% lower than the former. The VXN has been above 20 points for 5 consecutive months, the longest stretch since the 2022 bear market. The market is factoring in the significant volatility risk in the tech sector.