Market Recap – August

1. What happened in the markets?

Canadian stocks had a very strong month. The S&P/TSX gained momentum in August, setting a new record. The rally was led by two big drivers: Canadian banks, which reported profits above expectations, and gold miners, which surged as investors sought safety amid global uncertainties. Together, these factors gave the TSX one of its strongest monthly advances of the year.

In the U.S., the S&P 500 also posted strong results and hit fresh record highs. The index logged its fourth consecutive positive month, supported by large technology companies and ongoing excitement around artificial intelligence. This momentum shaped overall market sentiment across North America.

Bond markets stayed calm. Canadian aggregate bond ETFs remained stable, holding onto their modest gain for the year. With no new policy changes from either the Bank of Canada (2.75%) or the Federal Reserve (4.50%), interest rates were unchanged, keeping bond prices steady.

Money market yields remained attractive. Elevated short-term rates continued to provide consistent income, offering a reliable anchor for conservative portfolios.

The Canadian dollar was largely unchanged in August.

2. What does it mean for Embark Funds?

Asset class change	Impact on cohorts
Canadian Equities	Gains from banks and gold miners lifted all cohorts; the effect was most pronounced for younger cohorts with higher equity allocations.
U.S. Equities	S&P 500 climbed to fresh highs; all cohorts benefited, especially the younger ones with larger equity exposure.
Bonds	Bonds were stable to slightly positive, helping preserve capital and add modest gains—supportive for older cohorts.
Money Market / Cash	Continued to provide steady, attractive income—most relevant for graduate and conservative cohorts.
Canadian Dollar vs USD	Little change in August; currency had minimal impact on portfolio results.