BlockBeats news, November 6: Last night and early this morning, U.S. stocks suffered a severe rout, with markets in turmoil. Wall Street traders attributed today's sharp decline to algorithmic and programmatic selling, which intensified market volatility.
Goldman Sachs traders described today’s market as “extremely painful.” Top Goldman Sachs trader John Flood noted that long institutional positions have once again hit a standstill, with massive cloud computing positions bought by hedge funds during yesterday’s rebound being rapidly sold off, and “no buyers have yet stepped in.”
Several seasoned traders described the liquidity conditions at the opening of U.S. equities as "highly liquidation-like," noting that algorithmic and CTA fund program selling intensified the initial sharp decline in the absence of buyers.
According to Vanda Research, the retail selling volume in the first 30 minutes of trading on Thursday set the largest single 30-minute sell-off in nearly several months, approaching the peak seen during the retail panic sell-off at the end of July 2024.