Stock buybacks appear to be an under-the-radar driver of the recent market rebound. The act of a company repurchasing its own stock can be seen as a sign of financial health and confidence from executives that the share price will rise. Famous investor Warren Buffett is one of the most well-known supporters of buybacks.
Bank of America compared the start of 2024 through the end of last week with the same time frame in prior years. It found the stock repurchase percentage appears to be at a high going back to at least 2010. What's more, Bank of America said buybacks are tracking above seasonal levels for the 23rd straight week. Communication services stocks within the S & P 500 have completed the highest share of buybacks to market cap, the firm found.