Insights
“I think if we think about the big themes that were at play during the first quarter, obviously, the largest of them is going to be the war in Iran.”
Join Julie Biel, CFA, Chief Market Strategist at Kayne Anderson Rudnick, as she delves into the key factors driving the economy and equity markets in 1Q 2026. In this episode, Julie discusses the war in Iran, the evolving role of artificial intelligence, differences between large‑cap and small‑cap market dynamics, developments in private credit, and a framework for evaluating how businesses may withstand the threat of generative AI.
Key Insights and Trends
The war in Iran was a dominant macro driver in the first quarter, contributing to strong performance in energy and related industries while influencing broader market leadership. Artificial intelligence participation continued to expand beyond software into data‑center‑related infrastructure and memory, while concerns around generative AI pressured software‑heavy areas of the market. At the same time, heightened scrutiny of leverage and underwriting quality weighed on publicly traded private credit platforms, alongside shifting performance dynamics between large‑cap and small‑cap equities.
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This information is being provided by Kayne Anderson Rudnick Investment Management, LLC (“KAR”) for illustrative purposes only. Information in this article is not intended by KAR to be interpreted as investment advice, a recommendation or solicitation to purchase securities, or a recommendation of a particular course of action and has not been updated since the date listed on the correspondence, and KAR does not undertake to update the information presented. This information is based on KAR’s opinions at the time of publication of this material and are subject to change based on market activity. There is no guarantee that any forecasts made will come to pass. KAR makes no warranty as to the accuracy or reliability of the information contained herein. Past performance is no guarantee of future results.
