The Factor Report

Market Wrap

For the week ended April 17th, 2026, stocks were higher everywhere for the third straight week. Bonds were also higher for the week as the iShares Core US Aggregate Bond ETF (AGG) rose 0.53% with yields falling; the 10-year US treasury yield dropped to 4.25%, according to Yahoo Finance. Asset price drivers of the week:

• Monday should have started the week on a sour note after Trump threatened to barricade the Strait of Hormuz, but rumblings of a peace deal sent stocks sharply higher.
• Rumors continued on Tuesday, causing indices to rise again. We also got a report that the Producer Price Index, a key measure of inflation, rose less than expected in March.
• Stocks were mixed on Wednesday on more rumors of a truce with Iran and another inflation report, import prices, came in below forecasts.
• Thursday saw mixed results again after Israel and Lebanon agreed to a ceasefire. On the economic front, jobless claims came in lower than expected and a manufacturing survey in Philadelphia showed surprising strength.
• Friday ended the week on a strong positive note after Iran said the Strait is now completely open. That sent the price of oil lower by almost 10%, easing inflation concerns.
• Next week will be a quiet one, although we will get US retail sales, home sales, and consumer sentiment. All data will be watched closely since the Federal Reserve will meet and give their rate decision the following week.

Performance Summary

As shown in the chart, the US was this week's winner. Non-US Developed struggled partially due to reports that Europe may run out of jet fuel soon. Within the US, the Tech-heavy Nasdaq was by far the strongest component, more than doubling the return of the more traditional Dow Jones Industrial Average. As a result, from a factor perspective, no factors outperformed the global All Country World Index (ACWI), although Momentum was just about in-line.

In The News

The Social Security cost of living adjustment is expected to jump.

https://www.thinkadvisor.com/2026/04/14/social-security-cola-projected-to-jump-to-32-for-2027/?kw=Social%20Security%20COLA%20Projected%20to%20Jump%20to%203.2%25%20for%202027&utm_position=1&utm_source=email&utm_medium=enl&utm_campaign=retirementreport&utm_content=20260414&utm_term=tadv&oly_enc_id=3992A1328267B3X&user_id=3d158419d93f4751d4b3b79dd78d9abf446b89b61e92e7567cb4126b86cb53c5

An interesting piece on how this year's stock pattern is bucking the historical trend.

https://www.marketwatch.com/story/stocks-usually-take-the-escalator-up-and-the-elevator-down-in-this-latest-rebound-it-is-happening-in-reverse-bb4369ca?mod=home_lead

Metric Financial's first quarter review and outlook.

https://img1.wsimg.com/blobby/go/97044d91-7509-4a8d-8f49-f4ec7c4fcaa9/downloads/36744d6b-6e69-406d-8b87-e935359f4404/1Q26LookBack.pdf?ver=1776419793490

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)

Metric Financial, LLC (“Metric”) is a registered investment adviser offering advisory services in the State of Connecticut and in other jurisdictions where exempted. Registration does not imply a certain level of skill or training. Follow-up or individualized responses to consumers in a particular state by Metric in the rendering of personalized investment advice for compensation shall not be made without our first complying with jurisdiction requirements or pursuant to an applicable state exemption.

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.