The first half of 2026 has seen the effects of AI-related investment extend across a growing range of industries and markets. While semiconductors remain a significant driver of returns, the benefits of AI-related spending are increasingly reaching beyond a narrow group of technology companies. Investors are evaluating opportunities created by broadening market leadership, strong earnings growth, and shifting market dynamics, while keeping an eye on inflation and geopolitical developments.
In our Q2 2026 market review commentary, we examine the trends shaping today’s investment environment and discuss what they may mean for investors. Topics include broadening market leadership, earnings-driven returns, opportunities in international equities, developments in direct lending and private equity, and the factors supporting the current market environment.
Key topics include:
- How market leadership continues to broaden beyond a narrow group of large technology companies, while semiconductors remain a dominant driver of returns.
- Why earnings, rather than multiple expansion, have been the primary contributor to equity market gains in 2026.
- Why small-cap performance has been concentrated among a limited number of companies, despite attractive valuations relative to large caps.
- Why we remain constructive on international equities, particularly emerging markets.
- Why recent headlines surrounding direct lending may not fully reflect underlying market fundamentals.
- The growing importance of manager selection in private equity.
- The factors supporting the market environment despite inflation and geopolitical uncertainty.
Read the full commentary.
