The Factor Report

Market Wrap

For the week ended May 30th, 2025, stocks were again mixed, but this time higher globally. In the US, it was a holiday-shortened week that started off on the right foot as investors received well the news that Trump's 50% tariff on the EU (promised the previous Friday) would be postponed until July 9. Wednesday brought some trepidation ahead of Nvidia's earnings and a report showing the US economy shrank slightly in the first quarter of 2025. As usual, Nvidia's earnings did not disappoint. On top of that, it was announced that a federal court blocked many of Trump's tariffs. The excitement over that was a bit perplexing; as expected, that decision was appealed and the tariffs were reinstated. On Friday, an early sell-off thanks to Trump's accusations that China violated the trade agreement with the US eased later in the day and stocks ended about flat. Bonds were again also volatile, but this time headed higher, sending the 10-year US treasury yield lower to about 4.40%, according to MarketWatch.

Performance Summary

As shown in the chart, the US took over the pole position, strongly outperforming its overseas counterparts. In fact, Emerging Markets turned in a negative week. Within the US, there were really no winners as both the Tech-heavy Nasdaq and the Dow Jones Industrial Average were in-line with the broader S&P 500. From a factor perspective, Momentum and Quality outperformed the global All Country World Index (ACWI).

In The News

How Americans are reversing their saving/spending habits post-pandemic.

https://www.marketwatch.com/story/americans-are-revenge-saving-after-years-of-splurging-savings-are-a-great-way-to-have-some-certainty-f676a037?mod=home_lead

How Trump accounts for children would work.

https://www.thinkadvisor.com/2025/05/29/how-trump-accounts-for-children-would-work/?kw=How%20%27Trump%20Accounts%27%20for%20Children%20Would%20Work&utm_position=1&utm_source=email&utm_medium=enl&utm_campaign=dailywire&utm_content=20250529&utm_term=tadv&oly_enc_id=6911H2583589A7Z&user_id=3d158419d93f4751d4b3b79dd78d9abf446b89b61e92e7567cb4126b86cb53c5

Why are friendly inflation numbers getting ignored?

https://www.marketwatch.com/story/u-s-inflation-rate-slows-again-but-trade-wars-are-a-wild-card-ea1e4330?mod=home_lead

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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