What Happened?
Shares of financial advisory firm Lazard (NYSE: LAZ) fell 5.3% in the afternoon session after hotter-than-expected inflation data sparked a broad market sell-off that particularly impacted the financial sector. The latest producer price index data came in higher than anticipated, raising concerns about persistent inflation. This news led to a general retreat in the stock market, with economically sensitive areas like financial services feeling the most pressure. The downturn was widespread, as the financial sector as a whole experienced significant losses, pulling down companies within the industry.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Lazard? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Lazard’s shares are somewhat volatile and have had 13 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 biggest move we wrote about over the last year was 3 months ago when the stock gained 3.7% on the news that investors grew more optimistic about a potential Federal Reserve interest rate cut in December. The positive sentiment was fueled by comments from New York Fed President John Williams, a voting member of the rate-setting Federal Open Market Committee, who stated the central bank could cut rates "in the near term" without jeopardizing its inflation targets. Following his remarks, market expectations for a rate cut in December shifted significantly. According to the CME FedWatch Tool, the probability of a December rate reduction surged from a 37% chance earlier in the day to 70%. While lower rates can compress bank profit margins, investors often view them as a catalyst for broader economic activity, potentially boosting loan demand and reducing the risk of defaults.
Lazard is flat since the beginning of the year, and at $50.19 per share, it is trading 13.1% 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 $1,239.
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