The Factor Report

Market Wrap

For the week ended May 1st, 2026, stocks were again mixed but ultimately slightly lower globally. Bonds were lower for the week as the iShares Core US Aggregate Bond ETF (AGG) fell 0.69% with yields rising; the 10-year US treasury yield increased to 4.38%, according to Yahoo Finance. Asset price drivers of the week:

• Monday started out on a positive note as indices rose modestly everywhere. With no data to react to, investors took an optimistic stance on impending earnings reports, particularly from big Tech and Tech-related companies.
• The optimism took a breather on Tuesday as stocks fell. Concerns about AI profitability and growth re-emerged after OpenAI missed on revenue estimates.
• Wednesday was about flat. From a trading perspective, it was quiet for a "Fed day". The Federal Reserve left rates unchanged and pointed to uncertainty in the Middle East as a potential inflationary pressure that needs to be monitored. Chairman Powell announced he will stay on the Board of Governors despite the end of his tenure as Chairman.
• On Thursday, stocks rallied on the back of multiple solid earnings reports. Investors also took solace that the economy may not be as bad as thought. Weekly jobless claims were below forecasts, personal income was higher than expected and, perhaps most importantly, the Personal Consumption Expenditures price index, a key inflation measure, was in-line with estimates.
• Indices hit fresh all-time highs on Friday largely on the back of Apple's strong earnings beat. This reinvigorated investor excitement over the AI trade, despite the concerns earlier in the week.
• Next week will be another busy one as we will get existing home sales, retail sales, and two important inflation data points. The Consumer Price Index will be released on Tuesday, followed by the Producer Price Index on Wednesday.

Performance Summary

As shown in the chart, the US was by far this week's geographical winner, followed by Non-US Developed. Emerging Markets ended just below the flat line. Within the US, the Tech-heavy Nasdaq led the broader market again on the aforementioned excitement over the AI trade. From a factor perspective, Momentum and Value won in the US.

In The News

One strategist asks investors to consider the upside potential and risks in the AI trade.

https://www.marketwatch.com/story/this-is-the-most-critical-question-facing-u-s-investors-right-now-and-it-has-nothing-to-do-with-iran-45bc8f2e?mod=home_lead

Americans' 9 biggest financial worries.

https://www.thinkadvisor.com/2026/05/01/americans-9-biggest-financial-worries-gallup?utm_source=omeda&utm_medium=email&utm_campaign=Newsletter-&om_id=1122919440&om_eid=3992A1328267B3X&hs_ce&oly_enc_id=3992A1328267B3X

Why do financial advisors matter?

https://www.thinkadvisor.com/2026/04/30/how-to-get-rich-and-why-advisors-matter-a-historians-take?utm_source=omeda&utm_medium=email&utm_campaign=Newsletter-&om_id=1122919440&om_eid=3992A1328267B3X&hs_ce&oly_enc_id=3992A1328267B3X

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.