Nasdaq's Volume Plunge to $250M Sparks Liquidity Woes as Index Tumbles to 414th in U.S. Markets

On September 9, 2025, , ranking 414th among U.S. equity markets. The decline in liquidity follows a mixed earnings season for tech firms and ongoing macroeconomic uncertainty. Analysts noted the volume contraction reflects reduced speculative activity in the index-tracking sector, particularly as rebalanced portfolios ahead of the October options expiry cycle.

Market participants observed a divergence between Nasdaq’s underlying fundamentals and technical indicators. While the index’s weighting toward growth stocks remains intact, recent underperformance against the S&P 500 has triggered rotation into defensive sectors. , creating a self-fulfilling liquidity vacuum in the NDAQ futures chain.

Volatility metrics showed a muted response to the volume decline, , indicating limited near-term risk perception. However, , suggesting some incremental hedging activity among index-linked .

To run this back-test I need to clarify a few practical details so the data pull and calculations match what you have in mind: 1. Market universe - Should the "top 500 stocks" be selected from all U.S. listed equities each day, or from a smaller universe (e.g., S&P 500 or Russell 1000) to keep the data pull manageable? 2. Price points for entry and exit - Buy at today’s close and sell at tomorrow’s close (uses closing prices), or buy at today’s open and sell at tomorrow’s open (uses opening prices)? 3. Risk controls - Any stop-loss, take-profit, or maximum holding-days constraints, or simply the 1-day hold regardless of price moves? 4. Transaction costs - Ignore for now (default), or apply an estimated commission/slippage per trade? Let me know your preferences (or feel free to accept default choices: U.S.-listed universe, close-to-close returns, no extra risk controls, no transaction costs).