The US IPO market is experiencing a significant recovery, with deal volume doubling year-to-date and dollar issuance reaching levels comparable to the 2021 record. This surge, driven by a rebound from years of muted activity and high demand for AI-related capital, does not signal a bubble-like environment. Unlike the euphoric periods of 1999 or 2021, current deal counts remain near long-term averages. Furthermore, corporate share buybacks, projected to exceed $1 trillion this year, provide sufficient demand to absorb the increased supply of new equity. While individual stock volatility remains high due to shifting correlations and leverage, the broader US equity market outlook remains positive, supported by robust earnings growth that continues to outpace index-level price appreciation. Ben Snider, Chief US Equity Strategist at Goldman Sachs, highlights that earnings, rather than valuation expansion, remain the primary engine for sustained market performance.
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