The fastest to break one trillion in history! U.S. companies officially announce stock buybacks at a record pace, injecting a strong boost into the U.S. stock market
American companies are repurchasing stocks at a record pace, demonstrating confidence in the economy. As of August 20, announced buyback plans have exceeded $1 trillion, setting a record for the fastest pace. NVIDIA plans to buy back $60 billion, and Apple, Alphabet, JPMorgan Chase, and others are also joining in. Buybacks provide support for U.S. stocks, with the S&P 500 index reaching an all-time high. It is expected that by the end of the year, the buyback scale will reach $1.3 trillion, and if the economy stabilizes, the buyback scale completed by 2026 could reach $1.2 trillion
According to the Zhitong Finance APP, American companies are planning to repurchase stocks at a record pace, indicating strong confidence in the economy. NVIDIA (NVDA.US) is the latest company to join the repurchase plan. Data compiled by Birinyi Associates shows that as of August 20, announced stock repurchase amounts have exceeded $1 trillion, marking the shortest time to reach this level. The previous record was set last October.
In recent months, major giants—especially in the finance and technology sectors—have approved large-scale stock repurchase plans. NVIDIA announced plans to repurchase $60 billion worth of stock after releasing its quarterly results on Wednesday after the U.S. stock market closed.
As early as May, Apple (AAPL.US) announced a $100 billion stock repurchase. Alphabet (GOOGL.US), JPMorgan Chase (JPM.US), Goldman Sachs (GS.US), Wells Fargo (WFC.US), and Bank of America (BAC.US) also announced plans to repurchase at least $40 billion worth of stock.
U.S. companies announce large-scale stock repurchases this year
Jeffrey Yale Rubin, president of Birinyi Associates, stated, "The ultimate buyers on the market will continue to emerge, which are the companies themselves. They are performing well and have sufficient funds for capital expenditures, which is a good way to return value to investors and company owners."
Last month, as major U.S. financial and technology companies launched repurchase plans, the total announced stock repurchase reached $166 billion, the highest amount recorded for July. Repurchases have provided significant support to the U.S. stock market, with the S&P 500 index recently hitting a new all-time high. A series of stock repurchase plans indicate that corporate executives' confidence is strengthening.
Rubin expects this momentum to continue until the end of the year, predicting that announced repurchase amounts will reach $1.3 trillion, with completed repurchases also setting a new historical high.
Rubin stated, "If the economy does not experience a significant slowdown, we predict that the completed repurchase amount will reach $1.2 trillion by 2026, which will be a new record."
The large-scale repurchases by companies have drawn criticism from some officials in the Trump administration. U.S. Treasury Secretary Scott P. Bessenet criticized Boeing (BA.US) for its "massive" stock repurchases instead of investing in research and development
