Market Recap* – Week of April 20, 2026

1. What happened in the markets?

Canadian stocks fell over the week as investors monitored the ongoing U.S.-Iran standoff, which kept oil prices elevated amid uncertainty over the fragile ceasefire. Tehran demonstrated control over the Strait of Hormuz with few signs of it reopening soon, weighing on sentiment. Sector rotation was evident during the week, with capital moving into energy and industrial names while information technology and materials experienced notable weakness. The combination of lower trading volume and geopolitical uncertainty kept the broader market from making meaningful progress.

U.S. stocks rose over the week, with the S&P 500 closing at a new all-time high on Friday. The gain was driven largely by technology and semiconductor stocks, which surged following a wave of stronger than expected quarterly earnings results. The performance of the U.S. market stood in contrast to Canada, where geopolitical uncertainty and inflation concerns continued to weigh on market performance.

Canadian bond prices edged lower over the week. Oil prices stayed high as the standoff over the Strait of Hormuz dragged on, keeping the risk of rising inflation alive. On top of that, a government report showed that the cost of producing goods in Canada rose sharply in March, well above what most analysts expected, with higher energy costs from the conflict being the main driver. When production costs rise, businesses often pass those costs on to consumers, which can push inflation higher. With the Bank of Canada set to make its next interest rate decision on April 29, markets were watching closely to see how policymakers would respond to the building price pressure.

The money market holding edged up very slightly over the week, continuing to offer stable and predictable returns. Short-term investments remained a reliable source of modest income during a week of mixed results across other asset classes.

The Canadian dollar was virtually unchanged against the U.S. dollar over the week. Canada’s role as a major energy exporter provided some support for the loonie as oil prices remained elevated, but ongoing uncertainty around the ceasefire and its implications for global growth kept the currency from making any meaningful move in either direction. The exchange rate closed at nearly the same level as the prior Friday, with neither side gaining a clear advantage on the week.

2. What does it mean for Embark Funds?

Asset class	Change	Impact on cohorts
Canadian Equities	↓	Modest negative for younger cohorts. Geopolitical uncertainty and sector rotation kept the market from advancing.
U.S. Equities	↑	Positive for younger, growth-oriented cohorts. Technology and semiconductor stocks led gains on strong earnings results.
Bonds	↓	Modest negative for older and more conservative cohorts. Elevated oil prices and inflation concerns kept pressure on bond prices.
Money Market	↑	Continued to support older cohorts and capital-preservation strategies. Short-term returns remained stable.
Canadian Dollar	→CAD	Little to no currency impact on foreign holdings. The Canadian dollar was virtually unchanged on the week.