Market Recap – Week of September 1

1. What happened in the markets?

Global equity markets dipped early in the week on concerns about the long-term sustainability of government debt levels. Mid-week, sentiment improved as signs of a cooling U.S. labour market boosted expectations for Federal Reserve rate cuts, lifting risk appetite. U.S. equities (S&P 500) finished the week positive on hopes of potential policy easing.

Canadian equities (S&P/TSX) also posted gains, led by strength in resources. Gold pushed to a new record above $3,600/oz following a weaker-than-expected U.S. employment report. Domestically, Canada’s unemployment rate rose to 7.1% as the labour market shed roughly 100,000 jobs over July and August.

Canadian bonds advanced, reflecting increased expectations that the Bank of Canada may adopt a more accommodative stance in response to slowing momentum and labour-market softness.

The Canadian dollar edged slightly lower against the U.S. dollar.

2. What does it mean for Embark Funds?

Younger cohorts benefited from gains in Canadian and U.S. equities, supporting long-term portfolio growth. Older cohorts saw stability and capital preservation from positive performance in Canadian bonds and steady money-market returns. Overall, this week’s moves supported growth for younger investors while providing safety for those closer to graduation.