Market Recap* – Week of August 3, 2026

1. What happened in the markets?

Canadian equities moved higher over the week, supported by strong domestic economic data and improving sentiment around interest rates. Canada added significantly more jobs than expected in July, while the unemployment rate fell to a two-year low, reinforcing signs that the economy continues to gain momentum despite ongoing trade-related uncertainty. Sector performance was led by materials and information technology, while telecom services, consumer discretionary, industrials, and financials also posted slight gains, more than offsetting weakness in energy, health care, and utilities.

U.S. equities moved higher over the week, with the S&P 500 reaching a record high as investors reacted positively to weaker-than-expected U.S. employment data and reduced expectations for future interest rate hikes. The U.S. economy unexpectedly lost 23,000 jobs in July, compared to expectations for job growth, prompting investors to scale back expectations for additional Federal Reserve tightening and supporting broader market sentiment. Sector performance was broadly positive, with materials, utilities and industrials leading the way.

Canadian fixed income markets moved higher over the week, with bond prices posting modest gains. While Canada reported a stronger-than-expected increase of 75,100 jobs in July and a decline in the unemployment rate to a two-year low, weaker U.S. employment data reduced expectations for future interest rate increases and helped support fixed income markets. Together, these developments contributed to a more favourable interest rate outlook and supported bond prices during the period.

Money market investments recorded modest gains over the week. Supported by prevailing short term interest rates, the asset class continued to provide stable and predictable returns with limited volatility.

The Canadian dollar strengthened against the U.S. dollar over the week, reaching its highest level in approximately eight weeks. Stronger-than-expected Canadian employment data and weaker U.S. labour market results supported the currency and improved confidence in the Canadian economic outlook.

2. What does it mean for Embark Funds?

Asset class	Change	Impact on cohorts
Canadian Equities	↑	Positive for cohorts with higher Canadian equity exposure. Strong gains in materials and energy helped offset weakness in technology and consumer-oriented sectors.
U.S. Equities	↑	Positive for growth-oriented cohorts. Broad market gains were supported by improving sentiment around interest rates and strength across most sectors.
Bonds	↑	Positive for conservative cohorts. Higher bond prices provided stability and contributed positively to portfolio returns during the week.
Money Market	↑	Continued to deliver modest positive returns, supported by the prevailing interest rate environment.
Canadian Dollar	↑ CAD	Slightly negative for portfolios with foreign exposure. A stronger Canadian dollar reduced the value of international holdings when translated back into Canadian dollars.