Technology drives markets, but concentrates risks

Global equity markets delivered a robust performance in the first half of 2026, with the MSCI All Country World index surging by 11%. This gain significantly surpasses the historical average for a six-month period since 1990, indicating a strong upward trend in stock valuations.

However, the path to this performance was far from smooth. Early in the year, the market rally was fueled by a positive macroeconomic scenario. This optimism was subsequently challenged by a sharp increase in energy prices, a consequence of the conflict in the Middle East. Following a swift correction, markets rebounded, shifting their primary driver from macroeconomic factors to corporate earnings.

This shift highlights a dynamic where company-specific performance, rather than broad economic indicators, became the main catalyst for market growth. The focus moved towards the profitability of individual businesses, suggesting a more selective investment environment despite the overall positive index performance.

While the overall market trend was positive, the article suggests that this rally concentrated risks. This implies that despite the headline gains, certain sectors or companies may have experienced disproportionate growth, potentially creating vulnerabilities within the market structure. The article, a chronicle by Lilia Peytavin, a global markets strategist at JPMorgan Asset Management, was published in Le Temps.