Algorithmic trading Bots and liquidity tightening exacerbates stock Fluctuation.

GoldenOctober2024
TRUMP-0,81%

On April 8, Jin10 reported that due to insufficient liquidity and headline-driven algorithmic trading Bots, the stock market is particularly susceptible to severe fluctuations. A false tweet about Trump’s tariff plan on Monday triggered a $2.7 trillion market rebound and pushed the US stock market to rise again today. As traders struggle to keep up with the market pace, market makers are starting to retreat, making trading more expensive and causing the stock market to become extremely volatile. These conditions persist, with the S&P 500 index soaring over 3% at the start of the most recent trading day. Brent Kochuba, founder of options data provider Spot Gamma, wrote: “Liquidity is terrible, so any relatively large order will impact the market.”

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