Deal momentum picked up in the second quarter, as announced transactions rose more than 64% year over year and completions climbed over 33%, led by software, utilities, energy, and healthcare.

As geopolitical uncertainty eases, deal opportunities are likely to expand, with private-equity sponsors sitting on roughly $4.3 trillion of dry powder ready for active investing.

However, risks remain, including the possibility of higher interest rates that could lift financing costs and dampen activity, especially for leveraged buyouts.

The upcoming second-quarter earnings from major U.S. banks are likely to shape the sales cycle and deal pipeline, offering fresh insight into the dealmaking environment, debt markets, and equity issuance.

Morgan Stanley now forecasts global M&A will hit a record $6.4 trillion in 2026, driven by buoyant equity markets and renewed corporate confidence.

Regulatory sentiment under the Trump administration is viewed as more permissive toward large deals, potentially reducing antitrust hurdles and supporting a more constructive M&A backdrop.