Wild stock swings amplified by headline-driven algorithmic trading bots, thin liquidity

The stock market is currently prone to sharp fluctuations, driven by a mix of low liquidity and algorithmic trading bots reacting to headlines. This dynamic amplified a fake tweet about President Donald Trump’s tariff plans, sparking a $2.7 trillion market surge on Monday, and is now powering another rise in U.S. stocks today. As traders struggle to adapt, market makers are pulling back, raising trading costs and intensifying volatility in equity markets.
Bernard Goyder for Bloomberg News