$51B Exodus: How Buybacks Saved the U.S. Market From Big Money’s May Massacre
Wall Street's whales dumped $51 billion in May—but don't break out the bear costumes yet.
Buybacks to the Rescue
While institutions fled, corporate treasuries opened their wallets. Share repurchases staged a classic 'don't fight the Fed' play, propping up indices as smart money headed for the exits. The irony? Same players funding buybacks with cheap debt were likely selling into the strength. Modern finance in a nutshell.
The Cynic's Corner
Nothing says 'efficient markets' like algorithmic buybacks masking institutional retreat. Just don't ask about the debt-fueled circularity—we're all having too much fun watching the S&P levitate.
BlackRock’s BUIDL Fund Becomes Margin Collateral on Deribit and Crypto.com
Companies announced an estimated $170 billion in new repurchase authorizations last month, absorbing supply and muting volatility. In addition, defensive sectors such as health care and utilities drew relative inflows, while cyclical areas tied to global trade—industrial machinery and semiconductors—saw the heaviest dumping.
Even with the tug-of-war between sellers and buybacks, major benchmarks scarcely budged: the S&P 500 ticked up 0.25 %, the Nasdaq added 1.6 %, and the Dow slipped 1.4 %. The mixed performance reflects a market that is neither in full-blown flight nor convinced a fundamental growth rebound is imminent—setting the stage for potentially sharper moves once clarity on tariffs and the economic outlook emerges in the second half of 2025.
