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S&P 500 companies have set a new quarterly record for stock buybacks in the first quarter of 2025, according to Liz Ann Sonders.
The total buybacks amounted to $293.5 billion, marking a significant increase of 20.6% from the previous quarter and 23.9% from the same period last year. Interestingly, the top 20 S&P 500 companies accounted for 48.4% of these repurchases in 1Q25, a slight decrease from 49.0% in the fourth quarter of 2024.
These figures highlight a continuing trend of substantial share repurchase activities among large U.S. corporations. For investors, this may signal confidence in the current economic outlook and corporate profitability.
The acceleration in buyback activity comes amid broader signals of market strength, reminiscent of the persistent S&P 500 outperformance over the Russell 2000 documented by Liz Ann Sonders in her analysis of equity leadership trends. Additionally, recent monetary policy developments, such as the Federal Open Market Committee's decision to hold rates steady while signaling a possible 2025 cut, detailed in Sonders’ coverage of FOMC actions, continue to shape both corporate strategies and investor sentiment.