The Nasdaq 100's valuation premium over the S&P 500 is near a 9-year low. Is tech actually expensive anymore?

Saw this Bloomberg chart and figured it was worth posting here since valuation gets brought up every time someone mentions QQQ. [Bloomberg Chart](https://imgur.com/a/yXgg3gC) For years, one of the main arguments against tech was that you were paying a much higher multiple for earnings than in the broader market. At the peaks between 2021 and 2023, the P/E gap between the Nasdaq 100 and S&P 500 was around 7-8 points. Now it's down to roughly 2, near the lowest it's been since 2017. I'm kind of torn on what that actually means. On one hand, if big tech keeps growing earnings, you're not paying anything close to the relative premium investors were paying a few years ago. That seems like a decent argument for QQQ. On the other hand, maybe tech didn't actually get cheap. Maybe the rest of the market just got more expensive and the gap closed because of that. A much smaller premium doesn't automatically mean you're getting a bargain. Either way, the whole "tech is way too expensive relative to everything else" argument looks a lot weaker now than it did in 2021. That's the part that's been stuck in my head. But yeah, a smaller premium doesn't mean either index is actually cheap in absolute terms. Could just be two expensive things sitting closer together. What are people actually doing with this? Adding QQQ now that the relative premium has shrunk this much, or sticking with SPY because a smaller premium still isn't the same thing as cheap?