Stock market is 'unhealthy from a trading perspective. ' here's why.


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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.