The latest data shows that in July 2023, the stock buyback scale of U.S. listed companies reached an astonishing $166 billion. This figure not only broke the historical record of $88 billion set in 2006 but also far exceeded the average level in recent years. Specifically, this buyback amount is three times the average level from 2021 to 2023, and more than double that of the same period last year.

This phenomenon reflects the strong confidence of American companies in the value of their own stocks. It is worth noting that since the beginning of this year, the total amount of buybacks announced by American companies has reached as high as $926 billion. Such a large-scale stock buyback undoubtedly injects strong momentum into the U.S. stock market, becoming one of the important factors driving the stock index to continuously set new historical highs.

Analysts point out that large-scale stock buybacks may imply that companies believe their current stock prices are undervalued or that they lack better investment opportunities. However, there are also viewpoints that excessive reliance on stock buybacks may affect a company's long-term development, as these funds could have been used for research and development, expansion, or employee benefits.

Overall, this wave of buybacks not only reflects the financial strength of American companies but also reflects the strategic choices of corporate management in the current economic environment. While investors focus on short-term stock price fluctuations, they should also weigh the company's long-term development prospects.