The stock market’s biggest buying force is on track to post a historic November as corporations resume a rapid pace of share buybacks after third-quarter earnings announcements.
One notable buyer of its own stock was Warren Buffett’s Berkshire Hathaway, which said it bought nearly $1 billion worth in August.
While companies are likely to continue to goad the market higher by returning cash to shareholders, it comes against a backdrop of concern that there may be no better place to put the cash. Further, a steady uptick in interest rates has some market strategists worried that lending — which helped pay for the buybacks — may become too expensive.
Both short-term and long-term Treasurys have seen their rates climb over the past 12 months, with the 10-year rate hovering at 3.21 percent, up from 2.3 percent one year ago.
The S&P 500, which fell intro correction territory in October with a drop of 10 percent from its September highs, has rallied 5.6 percent over the past 10 days.
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