^{This article originally appeared on Business Insider.}

Corporate deals are organizing a epic comeback this year.

This week only, Capital One agreed to buy Discover for $35 billion, Truist Financial announced a $15.5 billion sale of its insurance arm and Walmart he clasped his hands to buy TV maker Vizio for $2.3 billion.

The trio of transactions, worth a combined $53 billion, have boosted the value of deals announced worldwide this year to $425 billion – a 55% increase from the same period in 2023. Bloomberg estimates.

This is a stark contrast from the past two years. Global agreement values fell down from more than $5 trillion in 2021 to less than $3 trillion in 2023, and volumes fell 17% to 55,000 deals, according to the London Stock Exchange Group.

Megadeals were hit particularly hard. Transactions worth more than $5 billion fell 60%, from nearly 150 deals in 2021 to fewer than 60 last year, LSE Group found.

Mergers and acquisitions, initial public offerings (IPOs) and other types of deals knocked down in 2022 and 2023 because the central banks' fight against inflation increases in interest rates made financing more expensive.

A muted first half for stocks, fear of recessionincreased regulatory scrutiny, concerns about a US debt default and the outbreak of a second war also fueled uncertainty and flattened valuations.

High ratings

This year's agreement reflects a sunnier market and economic outlook. Shares are trading at near-record highs, giving companies a powerful deal-making currency.

High valuations also encourage selling, and many buyers like to bet on assets that are rising in price in the hope of capturing future profits.

Meanwhile, the Federal Reserve and other central banks have Signaling rates have probably peaked and are likely to fall this year, lowering borrowing costs and reducing the risk of a recession.

Many companies are in good shape with strong cash flows and balance sheets, meaning they can afford acquisitions. There is also pent-up demand for deals after several lean years, particularly among businesses eager to go public or cash-strapped, looking to expand or looking to cut costs.

Additionally, private equity firms are under pressure to cash in on the increased value of their assets and provide a return to their backers.

However, it is far from a cloudless sky for aspiring traders. Possible headwinds include stubborn inflation, a sudden recessionescalating armed conflicts, regulatory crackdowns and uncertainty over this year's presidential elections.