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REDDIT

Why is the market incredibly sensitive during crashes and corrections?

S
Apr 22, 2025 · 23:46

The US market and major stock indexes has been behaving in a manner of a meme coin since tariffs.

I was just wondering on why the market is incredibly reactive these days? Within minutes and hours of a breaking news or a Trump Social post, it reacts. We are also seeing at least 2% up or down everyday on the Dow and S&P500.

Who are actually selling or buying? Hedge funds? I assumed they won't be as liquid and moving in and out of the market. Is it perhaps the big banks trading in billions? I know Citigroup profited off the market downturn by trading as in their Q1 report.

I didn't really follow the market during COVID 2020 crash as well, is it similar to this one?