The Factor Report

Market Wrap

For the week ended June 26th, 2026, stocks were lower everywhere. Bonds were higher for the week as the iShares Core US Aggregate Bond ETF (AGG) rose 0.44% with yields holding falling; the 10-year US treasury yield fell to 4.37%, according to Yahoo Finance. Asset price drivers of the week:

• With little data to react to, investors sent US indices lower on Monday with concerns lingering about any deal with Iran. SpaceX also helped pull Tech stocks lower as enthusiasm faded.
• Concerns about AI spending ramped up again on Tuesday and Tech stocks again dragged the broader indices lower.
• Despite an attempted rally on Wednesday as investors looked forward to Micron's earnings after the close, the same AI spend fears took over and indices fell again.
• There was yet another failed rally attempt on Thursday. Micron's earnings blew past estimates on Wednesday night, but the PCE price index, the Fed's preferred measure of inflation, came in hot (as expected). 
• Friday was mixed, but the US managed to eke out a gain. There was no data to get excited about and perhaps the week's selling was exhausted.
• Next week will give us a number of key data points, including US home prices, the ADP private payrolls report, and, of course, the US June jobs report on Thursday. That comes a day early as markets will be closed on Friday in observance of Independence Day.

Performance Summary

As shown in the chart, Non-US Developed was this week's winner, with the US not too far behind. Emerging Markets were a drag. Within the US, it was the tech-heavy Nasdaq that caused most of the problems. The more traditional stocks of the Dow Jones Industrial Average actually turned in a solid positive return. As a result, from a factor perspective, all factors except Momentum in the US beat the broader S&P 500.

In The News

The reality of continuing to work in retirement.

https://www.fa-mag.com/news/why-americans-shouldn-t-count-on-finding-work-in-retirement-87551.html?section=43&utm_source=FA+Magazine&utm_campaign=ef475bf4ef-FAN_FA+News_Yrefy_062626&utm_medium=email&utm_term=0_-02ce404ce3-625981838

What is the right spending rate in retirement?

https://www.fa-mag.com/news/the-4--rule-may-be-costing-retirees-money--morningstar-says-87521.html?section=43&utm_source=FA+Magazine&utm_campaign=db65872ea0-FAN_FA+News_Yrefy_Northern+Trust_062426&utm_medium=email&utm_term=0_-02ce404ce3-625981838

Does the Fed have to actually raise its rate to bring yields down?

https://www.marketwatch.com/story/bond-yields-are-falling-as-inflation-pops-the-feds-tough-talk-under-warsh-is-helping-7d538b3b?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)

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.