The Factor Report

Market Wrap

For the week ended February 20th, 2026, stocks were higher everywhere. Bonds were higher for the week as the iShares Core US Aggregate Bond ETF (AGG) rose 0.23% with yields relatively steady; the 10-year US treasury yield rose modestly to 4.09%, according to Yahoo Finance. Asset price drivers of the week:

• US markets were closed on Monday in observance of Presidents Day.
• Tuesday saw US indices rise on renewed hopes of a Federal Reserve rate cut after reports showed that New York manufacturing dropped and home builder confidence was lower than expected.
• Investors were feeling optimistic on Wednesday. They set aside their AI disruption fears and sent tech and tech-related shares higher. There was also some selective hearing with regard to the release of the Federal Reserve's meeting minutes, which showed a sharp divide on where interest rate policy should go. Buyers chose to hear rates could move lower if inflation continues to moderate.
• That optimism reversed course on Thursday and indices moved lower thanks to the lowest weekly jobless claims report so far this year and Philadelphia manufacturing expanding more than expected.
• After initially heading lower on higher-than-forecast inflation Friday morning, stocks rallied throughout the day after the Supreme Court struck down most of President Trump's Liberation Day tariffs.
• Next week will be relatively quiet from a data perspective, but we will get a spate of commentary from various Federal Reserve officials throughout the week. The most important release will be the Producer Price Index for January.

Performance Summary

As shown in the chart, the US was the week's best performer, although International indices weren't far behind. Within the US, the tech-heavy Nasdaq saw a sharp rebound from recent weakness and bested the S&P 500 and the Dow Jones Industrial Average. As a result, from a factor perspective, Momentum and Value outperformed the global All Country World Index (ACWI) and Quality was about in-line.

In The News

A new bill that would make the $6,000 senior tax deduction permanent (as of now, it expires in 2028).

https://www.thinkadvisor.com/2026/02/18/new-bill-would-make-6000-senior-deduction-permanent/?kw=New%20Bill%20Would%20Make%20%246,000%20Senior%20Deduction%20Permanent&utm_position=1&utm_source=email&utm_medium=enl&utm_campaign=financialplanninginsider&utm_content=20260218&utm_term=tadv&oly_enc_id=3992A1328267B3X&user_id=3d158419d93f4751d4b3b79dd78d9abf446b89b61e92e7567cb4126b86cb53c5

A great piece on the recent shift in market leadership.

https://www.marketwatch.com/story/the-s-p-500-is-undergoing-a-historic-shift-that-could-reshape-the-stock-market-66436b65?mod=home_lead

Will there be tariff refunds?

https://www.marketwatch.com/story/will-the-u-s-give-tariff-refunds-after-the-supreme-court-decision-what-we-know-so-far-5d1bf6fb?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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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.