Another knock-on effect of higher rates: stock buybacks may be reduced. According to S & P Global, corporate America is sitting on roughly $2.5 trillion in cash. "Two years ago, corporations were getting almost nothing on their cash holdings," said Howard Silverblatt, senior index analyst for S & P Dow Jones Indices. Buybacks decline A few weeks ago, S & P Global released its quarterly report on stock buybacks. The implication: in a higher interest rate environment, corporate America may be more inclined to hold cash as a hedge, which would imply fewer buybacks.

---

Persons: Howard Silverblatt, Dow, buybacks, Alec Young, MAPSignals, Young, Silverblatt, Cash Organizations: P Global, Dow Jones, Global, Technology, Cash, Cash Kings Apple, Microsoft, Exxon Mobil, Chevron, Cisco, Intel, IBM, Nvidia, Apple Locations: America