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Nasdaq volatility gauge rises as VIX drifts lower

MarketWatch notes that the gap between VXN and VIX, driven by selling in popular tech stocks, typically narrows either as Nasdaq volatility cools or if a sharper selloff lifts VIX.

Reported · Written up by our desk · Options

MarketWatch highlights a divergence between the VIX, the widely followed U.S. “fear gauge,” and a separate measure tracking Nasdaq-100 volatility. While the VIX has been drifting lower as traders stay focused on the bull market, selling in popular tech stocks has pushed the Nasdaq-100 volatility gauge, the VXN, higher.

The outlet points to the VXN minus VIX spread reaching levels not seen in some time, suggesting the two volatility measures are moving in different directions. It says the normalization would likely come from one of two paths.

In the more benign scenario, Nasdaq-100 stocks would calm down, letting VXN slide back toward VIX. MarketWatch also outlines a second, more problematic outcome where a sharp selloff lifts VIX toward the higher VXN level.

The article frames the imbalance as a signal that market participants who watch these gauges are becoming more cautious, even as the broader bull-market narrative remains intact.

Latest closeNasdaq Comp. 26,281.61 ▲0.3%|VIX 15.03 ▼5.1%

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