Tech Stock Volatility Hits Highest Level Since Dot-Com Bubble as Nasdaq-100 NDX Index Surges on Tuesday

According to UBS analysis, the Nasdaq-100 volatility index (NDX) reached approximately 27 on Tuesday (July 7), the highest level relative to the broader Chicago Board Options Exchange Volatility Index (VIX) since the 2002 dot-com crash. UBS equity derivatives research head Maxwell Grinacoff noted the surge reflects growing market concerns about overheating in artificial intelligence-related stocks. The gap between NDX and VIX volatility measures has expanded to levels unseen since 2002, with the Nasdaq-100 recording a 1.1% futures decline at pre-market and six consecutive trading days with single-day swings exceeding 1%. RBC Capital Markets expects SpaceX's Tuesday inclusion in the Nasdaq-100 index to further amplify tech stock volatility given the company's large scale.
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