Market Recap* – Week of October 13

1. What happened in the markets?

Canadian stocks moved up slightly last week as investors looked past weaker manufacturing and wholesale trade data. The gains suggest that markets expect conditions to steady, even though some recent numbers show slower activity. Resource and bank stocks helped lift the market, showing that confidence in the broader economy remains intact for now.

U.S. markets also ended the week higher, supported by steady company earnings and relief that there were no major surprises. With some reports delayed by the government shutdown, investors focused more on business results and the chance that the Federal Reserve may keep rates unchanged for longer. The calmer outlook helped improve overall confidence.

Canadian bond prices advanced as investors turned to safer options during a week of mixed economic signals. The small rise shows a cautious tone, with many waiting to see how slower growth could shape future rate decisions. Bonds continued to provide stability for investors through a period of uncertainty.

The Canadian dollar weakened against the U.S. dollar, weighed down by weaker Canadian economic data, and growing expectations of future Bank of Canada rate cuts. The currency’s decline underscored the contrast between Canada’s slower growth and the relatively stronger U.S. outlook.

2. What does it mean for Embark Funds?

Asset class change	Impact on cohorts
Canadian Equities ↑	Positive for younger cohorts with higher equity exposure, as modest gains in Canadian stocks supported portfolio growth.
U.S. Equities ↑	Benefited younger cohorts as U.S. market strength added to overall equity performance.
Bonds ↑ (prices)	Supportive for older cohorts, as slightly higher bond prices added stability and modest gains to portfolios with larger fixed-income exposure.
Money Market ↓ CAD weakens	Continued to provide steady income for near-maturity cohorts, while the weaker Canadian dollar modestly boosted returns from foreign investments.