With Fed on Hold, Companies’ Buybacks Offer Equity Markets a Tailwind
- Goldman estimates US share buybacks will increase 13% in 2024
- Jump in repurchases a ‘trigger’ for European markets: Liberum
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As the Federal Reserve signals it plans to delay interest rate cuts, investors are counting on a revival in corporate buybacks to help sustain this year’s stock market rally.
Strategists at Goldman Sachs Group Inc. expect total share repurchases by American firms to surge 13% to $934 billion in 2024 before crossing $1 trillion next year, backed by robust economic growth. That would mark a rebound from the 13% decline in 2023, when concerns about a potential recession led finance chiefs to preserve cash.