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A volatile stock market, with big swings up and down, is confounding traders and is unlikely to change until the outlook on inflation, tariffs and monetary policy becomes more clear, said
Jeff O'Connor, head of market structure, Americas, at Liquidnet, in emailed comments. “The market right now is unhealthy from a trading perspective. Correlations are high, and
fundamentals – both macro and corporate – are being drowned out by broad-based sentiment. On risk-on days, everything rallies together," he wrote. "On risk-off days, everything
sells off. When the whole market moves in lockstep like this, there’s very little room to generate alpha for institutional investors and PMs. It becomes a game of timing and risk mitigation
rather than true stock selection.” Don't expect it to change "until we get clarity on inflation, the Fed’s next moves, and tariff policy. Until then, institutional flows will
remain cautious, and retail activity will continue to play a role in market direction," he said.