Goldman Sachs: $1.7 trillion buyback wave will buffer the shock of a surge in equity supply.

PANews October 12 news, according to Sina Finance, Goldman Sachs said U.S. companies are expected to return a record $1.7 trillion to shareholders through stock buybacks in 2027, which could protect market valuations from dilution caused by equity issuance near historic highs. The investment bank expects the supply of publicly traded shares to rise significantly next year. While such an increase would typically pressure stock prices, Goldman Sachs added that corporate buybacks, combined with strong demand from households and foreign investors, should be sufficient to absorb the new shares.