Record Stock Buybacks And Surging IPOs Underscore Market Momentum

Tariffs are weighing on trade. Consumers feel squeezed. August is often a rough month for equities.

You’ve likely seen these headlines. They’re crafted to spark anxiety, often capped off with a gloomy quote from someone who’s been bearish for years.

But here’s philosophy: don’t obsess over the noise—watch the trend lines.

And the trends today suggest resilience, not collapse.

Buybacks At Historic Levels

Companies only allocate billions to repurchase their own shares if they believe the stock is undervalued—or at least a better investment than cash parked on the sidelines.

In July 2025 alone, U.S. corporations unveiled a record $166 billion in buybacks, more than doubling the previous July peak set in 2006.

Year-to-date buybacks: $926 billion—outpacing every prior record at this point in the year.

The biggest spenders? Financials and tech leaders, sitting on huge cash piles and betting big on long-term shareholder value.

Yes, buybacks dipped slightly from the Q1 frenzy, but the pace remains historically strong—and that’s what truly matters.

The IPO Engine Is Roaring Again

The initial public offering market has shaken off its slump.

204 IPOs so far in 2025, up 80% from this point last year.
Q2 alone raised $15 billion across 59 offerings, a 34% jump from Q1.

Unlike the SPAC bubble of 2021, today’s deals are anchored in fundamentals—companies with real growth and profits.

If investors were bracing for collapse, would startups be lining up to go public at billion-dollar valuations? Clearly not.

ETFs Continue To Attract Massive Flows

Money is pouring into exchange-traded funds.

U.S. ETF assets are nearing $12 trillion.
July brought in $116 billion of inflows, including a record $44.8 billion into active ETFs.

Active funds now account for 10% of the ETF market, compared to less than 1% just 15 years ago. That shows investors are seeking targeted exposure in themes like AI, defense, energy, and gold.

Corporate Earnings Remain Strong

Earnings season has delivered.

About two-thirds of S&P 500 companies have reported Q2 results.
Over 80% beat expectations—the best performance since 2021.
In tech, powered by AI growth, over 90% posted beats.

Even with tariffs and inflationary headwinds, analysts are still raising EPS estimates for Q3.

Tariffs Are A Challenge, Not A Crisis

Yes, tariffs are back. The U.S. effective tariff rate now sits at 18.3%, the highest since the 1930s. Economists estimate a 1.8% bump in prices and around a $2,400 annual hit per household.

But markets adapt. Supply chains shift. Companies re-shore. Consumers adjust. These frictions are real—but hardly fatal.