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AI Trading: Wall Street's Trillion-Message Problem - Traders Sound Off

AI Trading: Wall Street's Trillion-Message Problem - Traders Sound Offsummary: 1.2 Trillion Messages: Wall Street's Algorithmic OverloadThe Algorithmic TsunamiLynn Ma...

1.2 Trillion Messages: Wall Street's Algorithmic Overload

The Algorithmic Tsunami Lynn Martin, president of the New York Stock Exchange, recently dropped a data bomb: daily order messages have exploded to 1.2 trillion, a threefold increase in just four years. That's not just growth; it's a seismic shift driven by AI and algorithmic trading. It’s like Wall Street has gone from sipping coffee to mainlining espresso, and the caffeine is all code. According to the NYSE president, this surge is fueling a 1.2 trillion-message trading surge, AI trading is flooding Wall Street. Each "message" represents a buy, sell, or match order. Stocks are changing hands faster than ever. The sheer volume makes human oversight impossible. The NYSE now relies on AI to police itself, scanning for manipulation and cyberattacks. Think about that: AI is now the cop *and* the criminal (metaphorically, of course). The NYSE even runs its own offline data center, completely isolated from the internet. Speed and security are now intertwined. The IPO market is "really, really strong," according to Martin, driven by a desire for liquidity and regulation, no matter how fast things move. But is this truly a golden age, or a gilded cage built on algorithms? The World Trade Report 2025 projects AI could boost global trade by nearly 40% by 2040. This "40 by 40" effect comes from lower costs, tradable AI services, and AI-driven productivity. Global GDP could jump 12-13%. Optimistic projections, sure, but rely on assumptions of technological catch-up between economies. The WTO's Data Blog suggests AI could be harnessed for inclusive growth.

Blue-Collar Jobs: Safe Haven or False Security?

The Blue-Collar Lifeline? While AI is transforming finance and trade, it's simultaneously creating a skills gap elsewhere. A growing narrative suggests that blue-collar jobs are becoming a safe haven, as AI struggles with complex physical tasks. We're seeing tech layoffs and a tough job market for new graduates. Entry-level tech jobs are vanishing. Many are pivoting to the trades. Companies aren't hiring inexperienced workers like they used to. A SignalFire report from 2025 showed new graduates make up only 7% of hires at big tech companies. That's a drop of over 50% from pre-pandemic levels. Employers are using AI to cut headcount. One Microsoft study suggests automation is coming for various white-collar positions, including customer service and junior developers. Unemployment for recent college grads (ages 22-27) hit 5.8% in April 2025, higher than the overall unemployment rate. The skilled trades are making a comeback. A McKinsey report suggests U.S. hires in the trades could be 20 times the number of new jobs overall between 2022 and 2032. This is due to an aging workforce and infrastructure projects. AI's limitations are key. Robots lack the dexterity for many physical tasks. Nursing assistants, dredge operators, floor sanders, massage therapists, and phlebotomists are all relatively safe (for now). These jobs also offer decent financial security. Electricians make around $62,350 annually, plumbers $62,970, and HVAC mechanics $59,810. Some trades companies are even offering bonuses. But let's not get carried away. Dario Amodei, CEO of Anthropic, predicts AI could write "essentially all of the code" by 2026. The narrative of coding as a guaranteed career has backfired. AI is creating more demand for blue-collar work. Building and maintaining AI infrastructure requires electricians, data center managers, and power plant operators. Google is even training electrical workers in AI tools. Transitioning into the trades requires education, apprenticeships, and certifications. Even in blue-collar jobs, AI skills will be valuable. But the trades might not be a permanent solution. Robots are already automating some aspects of construction and manufacturing. The class of 2025 is worried about AI's impact. This is driving more young people to the trades. But if robots catch up, both white- and blue-collar jobs could become obsolete. What then? This is the part of the report that I find genuinely puzzling. Are we simply shifting the problem to a later date, or is there a genuine long-term opportunity here? A False Sense of Security The narrative of blue-collar jobs as AI-proof is comforting, but ultimately misleading. It's a temporary reprieve, not a permanent solution. The relentless march of technology will eventually automate most, if not all, physical tasks. The real question is not *where* to hide from AI, but *how* to adapt to a world where work itself is redefined.

AI Trading: Wall Street's Trillion-Message Problem - Traders Sound Off