Trade War Angst Is Sapping Liquidity in the US Stock Market
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Worries over the economic effects of the global trade war are further sapping liquidity in US stocks, creating a headache for institutional investors that could also boost volatility in broader markets.
Liquidity — the ease of buying or selling an asset without affecting its price — has been dwindling for years due to factors such as tighter regulations and the rise of algorithmic trading. Tariff concerns have introduced a new wrinkle, stoking gyrations in individual stocks that have made it harder for institutions to trade in size.