US share buybacks are set to surpass $1 trillion next year for the first time ever, thanks to strong megacap technology earnings, strategists at Goldman Sachs Group Inc. said.
For 2024, the bank expects S&P 500 stock repurchases to grow by 13% to $925 billion and a further 16% in 2025 to just over $1 trillion, rebounding from last year’s decline. Easier lending conditions as central banks cut rates, as well as the removal of political uncertainty after the US election, should also help, Goldman added.
Technology revenue “will be supported by strong consumer spending and increased demand for AI-related products,” Goldman Sachs strategists including Cormac Conners and David Kostin wrote in a note.
As improving profit growth and expectations of interest rate cuts from the Federal Reserve prompt companies to ramp up share repurchases, Goldman sees cash-rich big tech firms in particular contributing a “substantial portion” of buybacks in 2024 and beyond.
A rally across tech stocks has boosted the S&P 500 Index to a record levels this year as investors continue to gravitate toward money-making businesses, while the economy remains resilient.
Recently, Goldman Sachs upgraded its S&P 500 earnings-per-share forecasts for 2024 and 2025 thanks to stronger-than-expected profits across the biggest US tech stocks.
The bank has swiped three private banking veterans from BNY as the city climbs the ranks of America's fastest-growing wealth hubs.
Employee accounts, crypto trials and job cuts frame a pivotal year for the Swiss lender.
New name draws on founder's family history as consolidation reshapes the broker-dealer landscape.
Deal brings tech-focused planning expertise, expanded Pacific Northwest presence to national RIA platform.
Five low-cost index ETFs to anchor Trump Accounts as advisors weigh options against 529 and UTMA plans for clients
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.
