Goldman finds record trading volumes amid declining market depth
Summary
Market conditions in the US equity landscape have reached a concerning state, as the average daily executed value has surged to $1.041 trillion in 2026, up from $511 billion in 2023. Despite this increase in trading activity, top-of-book liquidity has fallen by 21%, leaving only $11 million in bids and offers available at the best price. Consequently, the depth behind each billion dollars traded has plummeted to approximately $11,000, marking the thinnest depth on record and indicating a troubling mismatch between volume and liquidity that raises concerns about market resilience amid larger trades.
Tokens
$SPX
Analysis
Goldman: Goldman Sachs is a major global investment bank and financial services firm that offers market research, trading, and advisory services. Its recent analysis, referenced in the news, examines how rising equity trading activity coincides with reduced depth in order books at the top price levels. The report underscores structural concerns in market resilience during periods of high activity. @zerohedge: @zerohedge is a widely followed Twitter account that provides real-time financial market commentary, data analysis, and news aggregation focused on economics and trading. In this instance, it is sharing and contextualizing Goldman's findings on equity market liquidity conditions for its audience. Market Liquidity: US equity markets are operating with notably thinner top-of-book depth relative to overall trading activity, raising concerns about resilience when large orders hit the tape. Volume vs Depth Trends: Daily executed values in equities have expanded substantially over recent years while available liquidity cushions at best prices have contracted, creating a mismatch highlighted by major financial institutions.
Categories
macro