What Happened?

A number of stocks fell in the afternoon session after investors raised concerns over the stability of the private credit market, following a key announcement from a major bank. JPMorgan Chase announced it would be restricting lending to private credit providers. This decision came after the bank marked down the value of several loans in its portfolio, signaling potential stress in this rapidly growing corner of the finance world. The move sparked broader industry jitters, leading to a rush for liquidity. In response to these pressures, several large industry names were forced to limit redemptions for their key funds, adding further downward pressure on financial sector shares as investors weighed the potential for wider contagion.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Investment Banking & Brokerage company Lazard (NYSE: LAZ) fell 6.9%. Is now the time to buy Lazard? Access our full analysis report here, it’s free.
• Asset Management company TPG (NASDAQ: TPG) fell 3.9%. Is now the time to buy TPG? Access our full analysis report here, it’s free.
• Asset Management company Carlyle (NASDAQ: CG) fell 3.9%. Is now the time to buy Carlyle? Access our full analysis report here, it’s free.
• Custody Bank company Invesco (NYSE: IVZ) fell 3.7%. Is now the time to buy Invesco? Access our full analysis report here, it’s free.
• Custody Bank company Franklin Resources (NYSE: BEN) fell 3.9%. Is now the time to buy Franklin Resources? Access our full analysis report here, it’s free.

Zooming In On Lazard (LAZ)

Lazard’s shares are somewhat volatile and have had 12 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 3 days ago when the stock dropped 8.1% on the news that rising geopolitical tensions in the Middle East triggered a significant spike in crude oil prices. 

The conflict escalated concerns about potential supply disruptions in the Strait of Hormuz, a critical chokepoint for global energy shipments through which a fifth of the world's oil passes. In response to the heightened risk, crude oil prices jumped, with U.S. benchmarks approaching $120 a barrel. This surge in energy costs fueled broader inflation worries, prompting a flight from riskier assets. The uncertainty rippled through global equity markets, with major U.S. indexes like the S&P 500 and Nasdaq-100 declining in early trading.

Lazard is down 18.4% since the beginning of the year, and at $40.58 per share, it is trading 29.7% below its 52-week high of $57.75 from August 2025. Investors who bought $1,000 worth of Lazard’s shares 5 years ago would now be looking at an investment worth $925.54.

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