Wall Street's focus on trade issues has led to an unusually high correlation among S&P 500 stocks, reaching levels not seen since 2020. This phenomenon means that most stocks are moving in tandem, reducing opportunities for investors to diversify and protect their portfolios if market conditions deteriorate. Experts have highlighted that traders are underpricing the risks associated with U.S. trade policy, with both bond and equity markets showing signs of complacency. The resulting lockstep movements in U.S. equities are creating challenges for stock pickers attempting to outperform in an already unpredictable market environment.