American companies announced the least share purchasing last month, in dollars, since the Covid Pandemic, an early sign of cash that hoarding through concerns about economic growth and the impact of a global trade war.
The value of announced return in the US reached $ 39.1 billion in March, the lowest dollar value since October 2020 and the lowest for March since 2019, according to data collected by Birinyi Associates. That is a worrying sign for investors, because return offers a crucial support pillar for the US stock market, which is already considerably lower than the all-time highlights of February and is confronted with pressure from the rates of the Trump administration, which will be announced on Wednesday afternoon.
“Nobody knows what will happen to rates,” said Jeffrey Yale Rubin, president of Birinyi Associates. “So how should business leaders make plans for cash flows? It is a lot easier to slow back than to lower dividends until companies know more about trade views.”
A weak pipeline of planned programs for the repurchase of shares is proof of decreasing trust among managers. And with the Federal Reserve signaling, it is planning to avert interest rates until inflation cools down, a revival in business sales may be necessary for stock markets to return.
Companies, which had been stingy on stock buying in recent years, resumed their purchases at a blistering pace in 2024 and brought the second highest annual dollar value to record.
