Event Dime
Hedging Demand Spikes Amid AI-Driven Market Rotation
- When:
- July 20, 2026 · 4:00 AM
- Where:
- Cboe Global Markets
- Source:
- Cboe Global Markets
The accelerating sell-off in chip stocks last week renewed worries over the bigger AI trade, leading to weakness in both the Tech sector as well as the broader SPX® Index. While SPX 1M implied volatility gained 2.6 pts wk/wk, QQQ 1M implied volatility jumped 3.8 pts, and SMH (Semis ETF) 1M implied volatility jumped 5 pts to a 1-year high of 59%. The SMH-SPX 1M implied volatility spread widened to a record high of 44%, now over 5 standard deviations above average. Learn more in this week’s Macro