Bank of America's 14.60 Billion Trading Volume Ranks 41st Amid Wall Street's Buyback Boom

On June 9, 2025, Bank of America Corp. (BAC) experienced a trading volume of 14.60 billion, ranking 41st in the day's stock market activity. The stock price of BAC decreased by 0.22%.

One of the key drivers behind the 2025 rally on Wall Street is the significant increase in corporate share buybacks, which have reached levels not seen in years. As of June 9, the S&P 500 and Nasdaq 100 are both trading just 2% below their all-time highs, marking a notable recovery from the March correction and the volatility caused by tariffs earlier in the year.

Corporate buybacks, though often overlooked, have played a crucial role in the market's quick recovery. As of June 5, S&P 500 companies had authorized $750 billion in share repurchases year-to-date, surpassing the $600 billion authorized by this time in both 2023 and 2024. The financial sector, in particular, has been a major contributor to this trend, with $200 billion in buyback programs announced.

In the first quarter of 2025, S&P 500 companies repurchased $283 billion in stock, a 23.6% increase from the prior quarter and a 26.9% rise over the previous year. This surge in buybacks has been driven by several large banks, including JPMorgan Chase & Co. and Bank of America Corp., which together added $18 billion in total buybacks.

Multiple studies have shown that buybacks improve liquidity, reduce volatility, and save retail investors significant transaction costs. For instance, a 2021 study by the U.S. Chamber of Commerce found that buybacks saved retail investors between $2.1 billion and $4.2 billion in transaction costs since 2004. Additionally, data from S&P Global indicates that the S&P 500 Buyback Index has gained over 1,000% in price return since 2000, nearly double the return of the equal-weighted S&P 500.

Despite the record pace of buybacks, there is a growing competition for capital from artificial intelligence investments. S&P 500 companies are increasingly allocating excess cash to capital expenditures, especially in the tech sector. However, for now, the substantial amount of available capital and improved market conditions continue to favor share repurchases in the near term.