Nick Botticelli and Matt Underwood, CFA, CAIA reflect on our positioning as markets entered Q2 2026.

Global markets rebounded strongly in the second quarter, driven by improved earnings, resilient economic growth, and easing geopolitical tensions. Market leadership expanded beyond large U.S. tech stocks, with international, value, and small-cap equities performing well, and private equity activity showing signs of recovery.

Much of the optimism centers on strong corporate fundamentals and continued investment in artificial intelligence, though the benefits remain concentrated among a few companies. The outlook is tempered by persistent inflation risks, higher interest rates, and uncertainty around future Federal Reserve policy.