Options Traders Skeptical of US Tech Stock Rebound

Despite a recent recovery in US tech stocks, options traders remain skeptical. This doubt is evident in the high cost of hedging against volatility in the Nasdaq 100, compared to the S&P 500. While tech stocks initially drove market gains, concerns about high interest rates and slowing economic growth led to a sharp decline. Although the market has partially recovered, traders are cautious due to slowing tech profits and uncertainty about the tangible benefits of AI. This uncertainty is reflected in elevated volatility levels, particularly in anticipation of upcoming events like Nvidia`s earnings report. Investors are eager to see if AI can translate into substantial profits for companies investing in it.