On March 15, according to The Kobeissi Letter, amid the backdrop of the Iran war, liquidity in S&P 500 futures quickly fell to $5.1 million, close to the lowest level since "Liberation Day" in April 2025, and 61% lower than the historical average (about $13 million). Goldman Sachs data shows that a level below $7 million is a signal of market pressure.
Analysts point out that low liquidity means that orders of a few million dollars can drive the S&P 500 to fluctuate by one level , similar to the market turmoil triggered by the tariff announcement in 2025. The impact of institutional trading is amplified, and investors need to be wary of extreme volatility.
