Market Recap* – Week of April 6, 2026

1. What happened in the markets?

Canadian stocks rose with the TSX posting its third straight weekly gain as resource and technology shares were among the biggest gainers. The week’s performance was driven by improving investor sentiment following a two-week ceasefire between the United States and Iran, which boosted confidence broadly across markets. On Friday, Statistics Canada reported that employment was little changed in March and the unemployment rate held steady at 6.7%. The result was modest but enough to meet markets’ low expectations given the difficult economic backdrop.

The S&P 500 added meaningful gains for the week, driven by optimism over a fragile two-week ceasefire between the U.S. and Iran. The ceasefire reduced fears of a prolonged energy shock, easing concerns about inflation remaining high for an extended period. Technology stocks were among the leaders however, the markets remained cautious as the ceasefire showed early signs of strain by the end of the week.

Canadian bond prices rose over the week. The ceasefire announcement triggered a broad easing of inflation fears, as oil prices pulled back sharply on expectations that the Strait of Hormuz could reopen. With the immediate threat of an energy-driven inflation spiral receding, pressure on bond prices lifted and prices moved higher. The improvement in the fixed income market reflected the same relief rally that drove equities higher, as markets priced in a less severe inflation outlook for the weeks ahead.

The money market holding edged up very slightly over the week, continuing to offer a stable and predictable return.

The Canadian dollar strengthened against the U.S. dollar over the week. The ceasefire between the U.S. and Iran reduced demand for the U.S. dollar as a haven. Although lower oil prices would normally weigh on the Loonie, the sharp pullback in U.S. dollar demand proved to be the stronger force, pushing the currency higher on the week.

2. What does it mean for Embark Funds?

Asset class	Change	Impact on cohorts
Canadian Equities	↑	Positive for younger cohorts with higher equity exposure. Canadian stocks rose, lifted by ceasefire optimism and gains in resource and technology shares.
U.S. Equities	↑	Positive for younger, growth-oriented cohorts. U.S. markets posted their best weekly performance since November as the U.S.-Iran ceasefire eased inflation fears and lifted sentiment broadly.
Bonds	↑	Positive for older and more conservative cohorts. Bond prices rose as the ceasefire reduced fears of an energy-driven inflation spiral, easing pressure on fixed income.
Money Market	↑	Continued to support older cohorts and capital-preservation strategies. Short-term returns remained stable and predictable.
Canadian Dollar	↑ CAD	Modestly negative for cohorts with foreign asset exposure. The stronger Canadian dollar reduced the translated value of U.S. and other foreign holdings when converted back to Canadian dollars.