U.S Equity Capital Markets: Momentum Builds as Investors Stay Long

Strong market fundamentals, robust issuance and select high-performing transactions define a constructive backdrop heading into year-end.

U.S. equity markets continue to demonstrate remarkable resilience. After rallying to new highs—supported by optimism around a potential U.S.–China trade deal, the Federal Reserve’s latest decision and strong corporate earnings—major indices have held steady despite modest pullbacks. Notably, the broader AI theme is emerging as a market barometer, with significant capex investments and performance gains driving investor enthusiasm and sector leadership.

Investor sentiment remains constructive, with consensus expectations pointing to an economic reacceleration in early 2026 as Fed policy and fiscal stimulus take effect. Although few near-term catalysts remain for additional upside, investors continue to stay fully invested in a market that has largely moved one way—higher.

Activity Accelerates

Despite the recent government shutdown, Equity capital markets activity has picked up meaningfully following the blackout period, with issuers seizing on constructive conditions and investors demonstrating strong risk appetite. Over the past few weeks, $12.3 billion was raised across 26 transactions, spanning IPOs, follow-ons, block trades and convertible offerings.Year-to-date, total U.S. issuance has reached $311 billion, up 19% year over year, signaling renewed confidence and liquidity depth across sectors.

A Measured but Optimistic Market

While macro crosscurrents—including the ongoing government shutdown, recent layoffs and lingering uncertainty around the Fed’s next move—have introduced caution, investors continue to show a strong bias toward staying long. Passive inflows and the return of corporate buybacks are expected to provide a supportive bid through year-end, particularly as funds seek to catch up on performance during what is typically a seasonally strong period. Convertible and structured equity issuance also remain in focus.