New York, U.S. – The second quarter saw significant market trends with chipmaker Nvidia soaring, briefly surpassing tech giant Microsoft as the world’s largest company and driving a substantial portion of the S&P 500 Index’s returns. Investor sentiment surrounding the economy and interest rates improved, fueled by positive inflation data that hinted at potential monetary easing by the Federal Reserve later in the year. Despite mixed economic indicators, including lower-than-expected GDP growth due to slower consumer spending, corporate profits remained resilient, with 80% of S&P 500 companies beating consensus estimates and earnings growing by 6.0% year-over-year.

During the quarter, the S&P 500 Index advanced by 4.3%, bringing its year-to-date gain to 15.3% in US dollar terms. The Lazard US Equity Focus Portfolio, however, underperformed its benchmark, posting a 1.9% rise compared to the Index’s 4.3% return.

In terms of contributor performance, Alphabet, Google’s parent company, reported strong results with solid expense management and margin expansion, while Goldman Sachs impressed with strong revenues in its markets and investment banking segments. On the contrary, consumer staples company Estée Lauder faced challenges despite reporting strong earnings, while Accenture’s lagging performance was attributed to strategic investments made amid uncertain market conditions.

Looking ahead, continued market volatility is expected as central banks navigate between financial stability and inflation control. While artificial intelligence holds promise for long-term transformations, concerns linger about potentially inflated valuations in certain stocks. The investment strategy remains focused on quality companies with strong financial productivity and potential for improvement, guided by the belief that broadening index participation will create a conducive environment for quality investing and long-term outperformance.