Big Tech's AI spending is depriving investors of juicy payouts

Goldman Sachs expects S&P 500 share buybacks to grow only 3% this year, signaling a notable slowdown in capital return activity. The firm cites a shaky economic backdrop and AI-related cost pressures as reasons companies may reconsider spending priorities. The takeaway is mildly negative for buyback-sensitive equities, but the news is more of an analyst outlook than an immediate market catalyst.

Analysis

Goldman Sachs expects S&P 500 share buybacks to grow only 3% this year, signaling a notable slowdown in capital return activity. The firm cites a shaky economic backdrop and AI-related cost pressures as reasons companies may reconsider spending priorities. The takeaway is mildly negative for buyback-sensitive equities, but the news is more of an analyst outlook than an immediate market catalyst.