Tech stocks are overvalued, despite last year's negative momentum. The NASDAQ 100 index is now at 2020 levels, the levels that preceded the jump on the back of lockdowns. Nevertheless, it looks overbought compared to the S&P 500 - its year-to-date gain of 13% is more than double the latter's 6.2%, Bloomberg notes.

Last year was marked by the worst fall of the NASDAQ 100 since the global crisis - it lost 33%. The rally at the beginning of this year was fueled by investor optimism expecting the Federal Reserve to ease its monetary policy, especially the slowdown in interest rate hikes. According to Bloomberg, the current ratio of the NASDAQ 100 to the S&P 500, at more than 3.0, is close to the point at which the dot-com bubble collapsed in 2000. This is a troubling signal, especially given the proximity of a recession to both the U.S. and global economies.