Market Recap – Week of September 8

1. What happened in the markets?

During the week, Canadian and U.S. stocks moved mostly higher as investors grew hopeful about interest rate cuts that could help the economy. In Canada, the stock market saw gains as expectations grew for easier monetary policy, even though job numbers were weak and unemployment was rising. Sectors focused on resources and technology performed best.

U.S. stocks also climbed on optimism that the Federal Reserve would lower rates soon. This view was supported by slow job growth, which made investors think that the economy needs support. The sentiment somewhat changed when the inflation reading came in higher than expected.

It was another substantial week for Canadian bonds. Prices rose steadily as investors expected lower central bank rates, making bonds more attractive. Weak economic signals and higher unemployment encouraged more activity in safer government bonds.

The Canadian dollar remained stable despite mid-week fluctuations due to weak job data and rate-cut expectations. The U.S. outlook was also uncertain, keeping the USD/CAD pair mostly range-bound around 1.38 rather than decisively moving higher or lower.

2. What does it mean for Embark Funds?

Asset class change	Impact on cohorts
Equities ↑	Positive, especially for younger cohorts with higher equity allocations, as strong Canadian and U.S. equity performance lifts portfolio returns.
Bonds ↑ (prices)	Positive, especially for older cohorts closer to maturity, where assets are heavier on fixed income securities.
Money Market – stable	Provided steady returns and stability for near-maturity cohorts, helping to dampen volatility.