The Factor Report

Market Wrap

For the week ended August 7th, 2026, stocks were higher everywhere again. Bonds were higher for the week as the iShares Core US Aggregate Bond ETF (AGG) rose 0.24% with yields falling; the 10-year US treasury yield decreased to 4.66%, according to Yahoo Finance. Asset price drivers of the week:

• Monday kicked the week off on a positive note. Investors demonstrated renewed enthusiasm on hopes for a peace deal with Iran as oil fell sharply. There was also some anticipation over Palantir's earnings, which would be released after the close.
• On Tuesday, indices got a boost from strong earnings from companies like Palantir, McDonald's, and Caterpillar as well as continued hopes for progress on talks with Iran.
• Stocks were mixed on Wednesday as Non-US Developed rose while the US and Emerging Markets fell slightly. Investors had a lot of data to digest as Eli Lily and Disney reported better-than-expected earnings, July private payrolls were below forecasts, and the services sector grew at a faster pace than anticipated.  
• Thursday was a relatively quiet day. Indices wavered between green and red as earnings continued to roll in and treasury yields continued their march higher.
• Stocks rallied again on Friday after July's jobs report showed the US lost jobs for the month versus the expected 85,000 add. Average hourly earnings also fell short of forecasts. The data helped reduce fears of a rate hike from the Federal Reserve.
• Next week we will get a number of key data points, including: existing home sales (Tuesday), the Consumer Price Index (Wednesday), the Producer Price Index (Thursday), and retail sales (Friday).

Performance Summary

As shown in the chart, the US had the best return of the week as Non-US Developed and Emerging Markets tied for second. Within the US, the tech-heavy Nasdaq finally reversed its losing ways and helped pull the S&P 500 higher. From a factor perspective, Value and Size in the US beat the broader S&P 500.

In The News

Why do annuity sales require so much regulatory scrutiny?

https://www.fa-mag.com/news/booming-annuity-sales-put-advisors-in-regulators--crosshairs-88009.html?section=43&utm_source=FA+Magazine&utm_campaign=9ea33a337c-FAN_AM_Russ+Prince+9%2F16_080626&utm_medium=email&utm_term=0_-02ce404ce3-625981838

Wondering why investors loved a weak jobs report?

https://www.marketwatch.com/story/some-of-the-urgency-is-gone-for-a-fed-rate-hike-in-september-after-the-soft-jobs-report-19bc5565?mod=home_lead

Where is US employment headed?

https://www.marketwatch.com/story/the-size-of-the-american-workforce-has-fallen-by-over-1-million-people-in-the-past-year-heres-whats-going-on-b8141aa3?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.