The Factor Report

Market Wrap

For the week ended May 8th, 2026, stocks were higher everywhere. Bonds were higher for the week as the iShares Core US Aggregate Bond ETF (AGG) rose 0.28% with yields rising; the 10-year US treasury yield increased to 4.36%, according to Yahoo Finance. Asset price drivers of the week:

• Monday kicked things off on a sour note when stocks fell after it was reported that a US warship was turned away from the Strait of Hormuz. This sparked worries that the war is not any closer to an end.
• Things quickly reversed course on Tuesday as indices rose on the back of a strong earnings season and rumors of a truce with Iran.
• Stocks rose again on Wednesday with a number of reasons for optimism: a potential truce with Iran, a strong earnings season, and a report showing the US added more private payrolls than expected in April .
• On Thursday, the brief rally paused. Weekly jobless claims came in below estimates, but the aforementioned truce with Iran began to feel a bit like waiting for Godot.
• Indices rose again on Friday despite a report that tensions are rising again with Iran. That wasn't enough to offset enthusiasm for a release showing the US added more jobs than expected in April.
• Next week will be another busy one as we will get existing home sales, retail sales, and two important inflation data points. The Consumer Price Index will be released on Tuesday, followed by the Producer Price Index on Wednesday.

Performance Summary

As shown in the chart, there was no real winner geographically as the US, Non-US Developed, and Emerging Markets were about even. Within the US, the Tech-heavy Nasdaq led the broader market again on strong earnings reports from the likes of Palantir and AMD and no sign of slowing AI spend. From a factor perspective, Momentum and Value again won in the US.

In The News

Watch those fees!

https://www.thinkadvisor.com/2026/05/04/average-financial-planning-retainer-fee-surges-52-in-3-years?utm_source=omeda&utm_medium=email&utm_campaign=Newsletter-&om_id=1122919440&om_eid=3992A1328267B3X&hs_ce&oly_enc_id=3992A1328267B3X

Why the SEC is encouraging Exchange Traded Fund (ETF) share classes for mutual funds.

https://www.thinkadvisor.com/2026/05/04/sec-chief-pans-texting-probe-calls-etf-share-class-relief-a-massive-tax-break?utm_source=omeda&utm_medium=email&utm_campaign=Newsletter-&om_id=1122919440&om_eid=3992A1328267B3X&hs_ce&oly_enc_id=3992A1328267B3X

A great piece on how to think about the ups and downs of stocks.

https://www.marketwatch.com/story/the-s-p-500-seems-to-be-doing-particularly-well-im-66-is-this-a-good-time-to-invest-100-000-in-the-stock-market-46fb8ff8?mod=home_ln

Disclosures

Past performance may not be indicative of future results. Different types of investments involve varying degrees of risk. Therefore, it should not be assumed that future performance of any specific investment or investment strategy will be profitable or equal the corresponding indicated performance level(s). Moreover, you should not assume that any of the above content serves as the receipt of, or as a substitute for, personalized investment advice from Metric Financial.

All data and performance information sourced from Morningstar and MarketWatch, unless otherwise indicated.

USA is the MSCI USA index, Non-US Developed is the MSCI EAFE index, Emerging Markets is the MSCI Emerging Markets index, and All Country World is the MSCI ACWI index. One cannot invest in an index. Because the factor indexes have varying inception dates, some of the returns provided are back-tested and do not represent actual performance. Inception dates are as follows:

Momentum = MSCI ACWI Momentum NR USD Index (Inception: 11/30/95)

Value = MSCI ACWI Enhanced Value NR USD Index (Inception: 5/29/15)

Quality = MSCI ACWI Quality NR USD Index (Inception: 5/29/92)

Low Volatility = MSCI ACWI Minimum Volatility (USD) NR USD Index (Inception: 5/28/93)

Size = MSCI ACWI Risk Weighted NR USD Index (Inception: 4/6/11)

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All written content is for information purposes only. Opinions expressed herein are solely those of Metric, unless otherwise specifically cited. Material presented is believed to be from reliable sources and no representations are made by our firm as to another parties’ informational accuracy or completeness. All information or ideas provided should be discussed in detail with an advisor, accountant or legal counsel prior to implementation.