What are stock buybacks & how do they work?

Market Overview - Major indexes are near record highs, with the S&P 500 adding $16 trillion in market cap since April lows [1] - The Fed is cutting rates [1] - Earning season is approaching [1] - September is historically the weakest month for the S&P 500 [8][9] - October has historically seen stock market crashes and volatility spikes [9] Stock Buybacks - Stock buybacks can lift earnings per share and support stock price [2] - 2025 stock buyback announcements are approaching $1 trillion, the year-end average [3] - Buyback executions occur in four waves per year, coinciding with earning seasons [4] - Buybacks have recently dropped off due to the buyback blackout window [5] - The buyback blackout window, from mid-August through mid-October, is nearing its peak [7][8] - The buyback bid is expected to return as earning season shifts into high gear [10] Investment Considerations - Watch for companies updating their share repurchase plans [10] - Monitor spikes in the VIX volatility index, as a higher VIX usually indicates weakness in stocks [11] - Keep an eye on long-term government rates, as a big jump can negatively impact stocks when buybacks are light [11][12]