The Factor Report

Market Wrap

For the week ended November 6th, 2026, stocks were lower everywhere. Bonds were higher for the week as the iShares Core US Aggregate Bond ETF (AGG) rose 0.6% with yields falling; the 10-year US treasury yield decreased to 4.86%, according to Yahoo Finance. Asset price drivers of the week:

• US indices were mixed on Monday with the US falling as investors braced for Apple's and Palantir's earnings post-close.
• Tuesday saw a reversal as the US rose (despite Apple's decline) and International dropped ahead of the US midterm elections.
• Stocks rose sharply on Wednesday after it was confirmed the Democrats had taken control of both the House and the Senate, which also sent oil prices lower.
• Investors quickly reconsidered their enthusiasm on Thursday as stocks plunged everywhere. Comments from the Governor-elect of Texas that the state needs to reconsider data center builds rocked Technology stocks.
• Friday ended the week on a slightly more positive note. There was widespread sentiment that Thursday's sell-off was an overreaction and the same Governor-elect backed off some of her comments. Meanwhile, the US added a lot more jobs than expected in October.
• Next week will again be sparse, but important. We will get two key inflation readings in the Consumer Price Index and the Producer Price Index on Tuesday and Friday, respectively. We will also hear from a number of Federal Reserve officials throughout the week. Thursday will give us earnings from Cisco and Applied Materials.

Performance Summary

As shown in the chart, Emerging Markets was this week's winner (least bad) as the US dragged global markets lower. Within the US, the more traditional Dow Jones Industrial Average by far outpaced its Tech-heavy counterpart, the Nasdaq. From a factor perspective, Quality, Low Volatility, and Size in the US beat the broader S&P 500.

In The News

What was at the heart of Thursday's sell-off?

https://www.marketwatch.com/story/what-the-governor-elect-of-texas-at-the-epicenter-of-the-ai-trade-blowup-is-now-saying-about-data-centers-55876582?mod=home_ln

The 2027 tax brackets have arrived.

https://www.marketwatch.com/story/the-2027-tax-brackets-are-out-see-what-the-standard-deduction-and-salt-tax-breaks-will-be-5dd1d293?mod=home_lead

OpenAI's CFO says data center investment will go on.

https://www.cnbc.com/2026/11/06/open-ai-data-centers-election.html

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 investing.com 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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