Daily active repurchase programs rise to 50-60 from 10 two years ago, fueled by 31% jump in manufacturing profits and $140 billion in recent capital raises.
Corporate buybacks in the S&P 500 have surged to record levels, with daily active repurchase programs increasing to 50-60 from just 10 two years ago. The expansion is driven by mid-cap and industrial firms, not just mega-cap tech stocks, as manufacturing profits jumped 31% year over year, providing fresh capital for repurchases.
Two June capital raises totaling $140 billion were absorbed without market disruption, marking the largest back-to-back equity supply events in U.S. history. The broad participation across sectors contrasts with recent headlines highlighting a pullback in buybacks by a handful of large tech companies.
Despite a 2% decline in the S&P 500 over the past month, the structural bid from buybacks remains strong, with market participants expecting a record year for repurchases in both notional value and number of participating companies.