M&A activity rebounds amid market uncertainty, Trump’s trade policies

Corporate dealmaking in the United States is off to its strongest first-half performance since 2022, signaling that appetite for mergers and acquisitions remains resilient in the face of market volatility, global conflicts and President Trump’s shifting tariff landscape, The Wall Street Journal reported on Sunday.

According to data from the London Stock Exchange Group cited by the newspaper, the total value of U.S. deals through June 25 has climbed roughly 10% compared to the same period last year, reaching its highest level in three years.

Deal activity stumbled early in the second quarter after Trump’s broad “Liberation Day” tariffs, introduced in April, rattled markets and temporarily dampened enthusiasm among dealmakers. However, activity has since regained momentum.

Several significant transactions have taken place in sectors less affected by Trump’s trade measures. Notable among them, Charter Communications (CHTR) agreed to acquire Cox Communications for nearly $22 billion, consolidating the broadband and cable market. In the tech sector, Salesforce (CRM) revived its approximately $8 billion acquisition of Informatica, underscoring the industry’s push to strengthen AI capabilities.

Footwear brand Skechers also made headlines with a deal to take the company private, valued at more than $9 billion.

Despite the uptick in total deal value, the overall number of transactions has fallen 16% this year, a decline driven largely by fewer deals under $1 billion, which traditionally make up the bulk of market activity.

Advisers say some acquirers are holding back, waiting for more economic clarity before pursuing major transactions. Wall Street still anticipates a robust M&A cycle under Trump’s administration, though the timing may extend beyond initial expectations.

Private equity has continued to play an outsized role in the market. LSEG reports that private-equity-backed deals are up nearly 21% in value so far this year, although the number of transactions has dropped by 20%.

The conditions are aligning for stronger dealmaking in the second half of the year, particularly if inflation cools further and the Federal Reserve moves to lower interest rates, the Journal reported. Capital remains available, and private equity firms are under pressure to deliver returns to investors while putting their raised funds to work.

The market for new stock offerings is also showing signs of revival. Major U.S. indexes have rebounded following the initial turbulence from Trump’s tariffs.

Recent IPOs have added to the optimism. Virtual physical therapy provider Hinge Health (HNGE) saw its shares jump 17% in its market debut in late May. Two weeks later, Circle Internet Group, a cryptocurrency company, delivered one of the most talked-about listings in recent memory.

In another encouraging sign, companies that have gone public in the past six weeks have, on average, outperformed the broader market, suggesting investor appetite for new offerings is strengthening.