Key Takeaways
- According to the U.S. Bureau of Labor Statistics, nonfarm payrolls rose by 162,000 in August and the unemployment rate held at 4.1 percent, providing a steady backdrop for markets.
- Crude oil, as measured by the WTI ETF (USO), jumped 9.52% for the week after U.S. and Iranian forces exchanged fire, as widely reported, helping lift the broad energy sector.
- Emerging markets, as measured by the EEM ETF (+2.35%), outpaced U.S. and developed-market indices, with Brazil, South Korea, and Taiwan among the strongest country markets.
- Value and momentum factors led factor performance, while low-volatility and equal-weight strategies lagged.
- U.S. large-cap indices finished nearly flat, with the S&P 500 ETF (SPY) up 0.12% and the Dow Jones ETF (DIA) down 0.18%.
Markets at a Glance
August 31 – September 4, 2026
1-week total return by segment, via ETF proxies, measured from the prior week’s final close (Aug 28, 2026) through the Sep 4, 2026 close. Bars share one scale across groups.
Equities
Bonds
Sectors
Alternatives
Factors
Weekly Recap
U.S. equity benchmarks closed the week with modest and mixed moves. The S&P 500 ETF (SPY) rose 0.12% and the Nasdaq 100 ETF (QQQ) added 0.35%, while the Dow Jones ETF (DIA) slipped 0.18% and the small-cap Russell 2000 ETF (IWM) edged up 0.07%. The Russell 1000 ETF (IWB) gained 0.08%.
The more notable action came outside U.S. large caps. International developed markets, as measured by the EFA ETF, rose 0.45%, and emerging markets, as measured by the EEM ETF, climbed 2.35%. Commodities and the energy sector led on the week, while several U.S. sectors tied to consumer spending, industrials, and real estate declined. Over the trailing year, the S&P 500 ETF (SPY) is up 19.97% and the Nasdaq 100 ETF (QQQ) up 25.58%, a reminder of the gap that can open between a quiet week and a longer horizon.
What Moved Markets This Week
Two realized developments shaped the tone of trading. According to CNBC reporting, stocks came under early pressure on Monday, August 31, after U.S. and Iranian forces exchanged fire, with U.S. Central Command confirming strikes on rocket launchers on Iran's Larak Island. That geopolitical flare-up coincided with a sharp move higher in oil prices during the week.
On Friday, the U.S. Bureau of Labor Statistics reported that nonfarm payroll employment increased by 162,000 in August and that the unemployment rate was unchanged at 4.1 percent, a reading consistent with continued but moderate labor-market growth. In the technology space, large-cap earnings results reported as above expectations, as noted by Lido Advisors, were cited as supporting sentiment around artificial-intelligence-related names, and the broad technology sector ETF (XLK) rose 0.87% on the week. These items are described here only as context for the moves in broad indices and sectors.
Equities: Sectors and Country Markets
Sector performance was uneven. The strongest sector in the data was energy, with the sector ETF (XLE) up 2.22%, followed by technology (XLK) at 0.87% and utilities (XLU) at 0.75%. On the other side, consumer discretionary (XLY) fell 1.97%, materials (XLB) declined 1.37%, real estate (XLRE) lost 1.28%, and industrials (XLI) dropped 1.07%. Consumer staples (XLP) and communication services (XLC) also finished lower.
Country markets showed wide dispersion. Brazil, as measured by the EWZ ETF, surged 6.47%, while South Korea (EWY) rose 4.76%, Taiwan (EWT) gained 3.98%, and Japan (EWJ) added 2.51%. Germany (EWG) fell 1.59% and China (MCHI) slipped 0.58%. Over the trailing year the range is striking, from South Korea's 164.25% to China's -7.22%, illustrating why a global lens can look very different from a domestic one.
Fixed Income and Commodities
Bonds broadly softened. The U.S. Aggregate Bond ETF (AGG) eased 0.14%, the Long-Term Treasuries ETF (TLT) fell 0.42%, and the Intermediate Treasuries ETF (IEF) declined 0.29%. Short-Term Bonds (SHY) were an exception, up 0.05%. Investment-grade corporates (LQD) fell 0.37% and high-yield bonds (HYG) slipped 0.18%. Over the past year, the aggregate bond ETF (AGG) is up 1.33%, while long-term Treasuries (TLT) remain down 1.43%.
Commodities were among the week's standouts. The WTI crude oil ETF (USO) rose 9.52% and the broad commodities ETF (DJP) gained 2.09%. Precious metals moved the other way over the week, with the gold ETF (GLD) down 0.5% and the silver ETF (SLV) down 0.33%, though both remain higher over the trailing month and year. Real estate, as measured by the REIT ETF (VNQ), fell 1.26%.
Factors and Style
Factor strategies isolate a single characteristic of stocks, such as cheapness (value), recent price strength (momentum), or lower price swings (low volatility). This week, value led with the value factor ETF (VLUE) up 2.09%, followed by momentum (MTUM) at 1.68% and high beta (SPHB) at 1.49%. More defensive tilts lagged: the low-volatility ETF (USMV) fell 0.92%, equal weight (RSP) declined 0.76%, quality (QUAL) slipped 0.47%, and dividend growth (SCHD) eased 0.29%. High dividend (VYM) was flat.
The style box echoed part of that pattern but with its own crosscurrents. Large growth (IWF) rose 0.55% and small value (IWN) gained 0.63%, while large value (IWD) fell 0.29% and mid growth (IWP) dropped 0.83%. The spread between value and growth over the trailing year remains wide at the factor level, with the value factor ETF (VLUE) up 74.58% versus the growth factor ETF (VUG) up 14.83%, a gap that shifts meaningfully from week to week.
What This Means for Long-Term Investors
This week is a compact illustration of how returns cluster in different corners of a portfolio: U.S. large caps barely moved, yet emerging markets, energy, and crude oil posted large gains while several U.S. sectors and long-term bonds declined. For investors with long horizons, that dispersion is one reason diversification across regions, sectors, factors, and asset classes tends to smooth the experience, since the segments leading in any given week, such as Brazil and oil this week, are rarely the same ones that led the week before.
Performance figures reflect ETF proxies for each market segment. Weekly returns are measured from the prior week’s final close (August 28, 2026) through the September 4, 2026 close; month and year figures are anchored to the same ending close. Dates reflect actual trading sessions, so market holidays can shift them.
This commentary is provided by Rubric Advisors, a California-registered investment adviser (registration does not imply a certain level of skill or training), for informational and educational purposes only. It does not constitute investment, legal, or tax advice, is not a recommendation or offer to buy or sell any security, and should not be relied upon as the sole basis for an investment decision. Market segment performance is measured using exchange-traded fund (ETF) proxies, which reflect fund expenses and may differ from their underlying indices; figures are unaudited and drawn from third-party data believed reliable but not guaranteed. Past performance does not guarantee future results. All investing involves risk, including possible loss of principal. Options strategies are not suitable for all investors, and private market investments are available only to qualified clients.