The Factor Report

Market Wrap

For the week ended June 5th, 2026, stocks were lower everywhere. Bonds were also lower for the week as the iShares Core US Aggregate Bond ETF (AGG) fell 0.9% with yields rising; the 10-year US treasury yield increased to 4.54%, according to Yahoo Finance. Asset price drivers of the week:

• Despite some positive news on the manufacturing and construction spending fronts, it was a tentative start to the week with US-Iran tensions rising again.
• With no data to react to, investors sent indices higher on Tuesday despite rising oil and more fighting between the US and Iran.
• Stocks headed lower on Wednesday despite a strong private payrolls report for May. Investors seemed to capitulate that an end to the war is not coming soon.
• Indices reversed and headed higher on Thursday despite a big earnings miss from Broadcom. A supposed cease-fire between Israel and Lebanon seemed to soothe investor nerves. 
• Friday ended the week on a sour note. Stocks were sharply lower everywhere after the US added far more jobs in May than forecasted and average hourly earnings also rose more than expected. This increased fears that the Federal Reserve may raise their benchmark rate at the next meeting.
• Next week will be another relatively quiet one, although we will get three key data points: existing home sales, the Consumer Price Index, and the Producer Price Index. These will be closely watched with the Federal Reserve meeting the following week (June 16-17).

Performance Summary

As shown in the chart, the US and Non-US Developed tied for "least bad" while Emerging Markets had the worst week. Within the US, in a reversal of recent weeks, it was Tech and Tech-related stocks that dragged the overall market lower as investors did some profit-taking. From a factor perspective, all factors except Momentum in the US beat the broader S&P 500.

In The News

A great piece on why income is more important than assets.

https://www.fa-mag.com/news/vanguard-to-retirees--it-s-withdrawal-rate--not-account-balance--that-matters-87253.html?section=43&utm_source=FA+Magazine&utm_campaign=e7d75e86f1-FAN_AM_Young+Advisors_060326&utm_medium=email&utm_term=0_-02ce404ce3-625981838

One analyst's view of what SpaceX is really worth.

https://www.marketwatch.com/story/what-spacex-is-really-worth-according-to-the-professor-called-the-dean-of-valuation-bab6cdd2?mod=home_lead

Is AI really killing jobs?

https://www.marketwatch.com/story/ai-may-be-killing-some-high-tech-jobs-but-its-also-creating-others-see-whos-winning-and-losing-9dc839e6?mod=home_econ

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.