Summary: In the first half of 2026, the average daily turnover of US stocks exceeded $500 billion, continuing to lead the world in liquidity depth and stability. This article analyzes the liquidity advantages of US stocks from dimensions such as market capacity, bid-ask spread, and order execution efficiency, and compares the liquidity differences with A-shares, revealing the core value of the US stock market's efficient trading environment for investors.
As the world's largest capital market, the US stock market's liquidity depth and stability have always been one of the core advantages attracting international investors. According to the latest statistics from the NYSE and Nasdaq, the average daily turnover of US stocks in the first half of 2026 exceeded $500 billion, an increase of 8% year-on-year, reaching a record high for the same period. This figure not only far surpasses other major markets but also further consolidates the leading position of US stocks in the global capital market.
Liquidity Depth: Ideal Venue for Large-Scale Trading
Liquidity depth refers to the market's ability to absorb large orders without significantly affecting prices. With a vast participant base, high-frequency trading ecosystem, and mature market structure, the US stock market can easily accommodate large buy and sell orders from institutional investors. For example, in the second quarter of 2026, a single order exceeding $1 billion caused an average price slippage of only 0.05%, far lower than in other markets.
In contrast, although the A-share market maintained an average daily turnover of around $150 billion in the first half of 2026, due to the daily price limit and T+1 settlement system, large orders have a significantly greater impact on stock prices, and there is a structural shortfall in liquidity depth.
Small Bid-Ask Spread: Guarantee for Low-Cost Trading
Another key indicator of liquidity is the bid-ask spread. The bid-ask spread for major US ETFs and blue-chip stocks is typically only $0.01 or even smaller, resulting in extremely low trading costs. Taking the S&P 500 ETF (SPY) as an example, its average bid-ask spread is only 0.02%, allowing investors to enter and exit at very low cost.
This advantage comes from the US market maker system and multi-trading center competition mechanism. Market makers provide continuous liquidity through high-frequency quotes, while multiple trading centers (such as NYSE, Nasdaq, BATS, etc.) compete with each other, further reducing transaction costs. Although the A-share market has gradually introduced market makers in recent years, the bid-ask spread is still generally above 0.1%, and some small and mid-cap stocks have insufficient liquidity, leading to higher spreads.
Order Execution Efficiency: Millisecond-Level Response Speed
In terms of order execution efficiency, the US stock market leverages advanced trading technology and direct market access (DMA) services to achieve millisecond-level order confirmation and trade feedback. In July 2026, Nasdaq announced that after upgrading its trading system, order processing latency had been reduced to within 10 microseconds, providing fast and predictable execution results for high-frequency traders and ordinary investors.
This high efficiency not only improves capital utilization but also reduces the impact of market volatility on order execution. The A-share trading system also has relatively high speed, but has experienced trading congestion under extreme market conditions. In contrast, thanks to its distributed architecture and disaster recovery mechanisms, the US stock market did not experience system paralysis even during the circuit breaker events in 2020.
Liquidity Stability: Ballast in Volatile Markets
The stability of US stock liquidity under extreme market conditions is also commendable. During the global market turmoil caused by geopolitical tensions in May 2026, the average daily turnover of US stocks actually rose to $550 billion, with the bid-ask spread only briefly widening to 0.05%. In comparison, the A-share market experienced a sudden drop in liquidity under similar conditions, with some individual stocks hitting the limit-down and trading halting.
This is attributed to the US market's circuit breaker mechanism and market maker obligations. When stock price fluctuations are too large, a market-level circuit breaker provides a cooling-off period, and market makers are obligated to maintain continuous quotes, thereby preventing liquidity black holes. In addition, the US market allows T+0 round-trip trading (with some restrictions), enabling investors to correct errors on the same day, increasing market vitality.
Comparison with A-Shares: Significant Liquidity Gap
Although the A-share market is the second largest in the world, there is still a significant gap in liquidity depth and efficiency compared with US stocks. In terms of market depth, a single US stock can have an average daily turnover of billions of dollars, while most A-share stocks have an average daily turnover of less than $100 million. In terms of price impact, large A-share trades (e.g., exceeding 1% of circulating market cap) often cause sharp stock price fluctuations, even triggering price limits (up or down).
More importantly, the "resilience" of US stock liquidity is stronger – even after major positive or negative news, the market can quickly return to equilibrium. In contrast, due to the higher proportion of retail investors in the A-share market, emotional fluctuations can easily amplify liquidity problems.
Value of High Liquidity to Investors
For ordinary investors, high liquidity means lower implicit transaction costs, faster trade execution, and smaller market impact. This benefits both short-term strategies' flexible operations and long-term investors' portfolio rebalancing. For institutional investors, the depth of US stocks is sufficient to accommodate huge fund inflows and outflows without worrying about affecting position building or exit.
From the perspective of global asset allocation, the liquidity advantage of US stocks makes them the first choice for international capital allocation. In the first half of 2026, net foreign inflows into US stocks reached $120 billion, exceeding the sum of all other markets, with liquidity being a key consideration.
Looking Ahead: Liquidity Advantage Expected to Continue
With the continuous improvement of market systems and technological advancements, the liquidity advantage of US stocks is expected to remain difficult to challenge in the coming years. The recent order flow disclosure reform promoted by the SEC is expected to further enhance transparency, while the continuous trading system planned by the NYSE may further reduce latency.
For A-shares, although liquidity is improving, they cannot replicate the depth and resilience of US stocks in the short term. Investors should fully recognize this difference when making cross-border allocations and leverage the liquidity advantages of US stocks to achieve more efficient wealth management.
In conclusion, the average daily turnover exceeding $500 billion is only the surface manifestation of the liquidity advantage of US stocks. Behind it are the sophisticated design of the system, continuous technological iteration, and the mature rationality of participants. This is both a magnet for global capital and the cornerstone for long-term benefits for US stock investors.
