The stock market has a $1 trillion secret weapon to fight further declines

• City said that the re -purchases of shares could conflict with the extended market drops.

• The bank expected shares of $ 1 trillion by 2025, up from 2024.

• Companies may turn the capital expenditures into re -purchases amid uncertainty in Trump’s policy.

The stock market contains a $ 1 trillion weapon to fight low prices: shares re -purchases.

CITI analysts said in the Monday note that as the stock market continues to decrease, it may represent a very good deal for companies to buy their shares at reduced levels.

“If the large shares in the United States continue to correct them, we expect the sharing re -purchase activity to increase, thus providing a level of support for stock prices,” said Scott Kronrte, a strategy for American stocks at CITI.

The re -formation of participation was historically in the hole for companies looking to generate stock gains during lean times, as reducing the number of suspended units enhances the price of each year.

Chroonert estimated that in 2025, there may be 1 trillion dollars of cumulative shares, which will represent 11 % of about 900 billion dollars spent on re -purchases in 2024.

It is noteworthy that Chroonert is that companies can start to transform their spending away from capital expenditures and towards shares re -purchases with a decrease in the market, especially given the uncertainty related to the tariffs of the Trump administration and commercial policies.

“Although the effects of politics may change the path from here, we continue to see the financial flexibility enhanced by many companies that have S&P 500 as a balance of current correction risks in the markets,” Krunrt said.

Below is the collapse of the cash use of the S&P 500: About 30 % goes to the shares resets, about 25 % to profits, about 45 % to capital expenses.

CITI 5500 highlighted S&P 500 as a convincing level of value for companies to increase their shares. This level represents an additional 3 % decrease of current levels.

The bank expects the index to rise to 6500 by the end of the year, by 18 % of the 5500 level.

S&P 500 was traded at 5,691 in the morning.

Regarding the S&P 500 companies are the largest buyers of their own shares, Citi referred to Apple, Alphabet, NVIDIA, Wells Fargo and Visa on an absolute basis, which brings about $ 190 billion in shares last year.

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