Market Recap* – Week of December 1

1. What happened in the markets?

Canadian equities drifted lower over the week. Several domestic sectors showed softer momentum even as U.S. markets improved, leading to a more cautious tone in local trading. Investors also appeared to be waiting for upcoming Canadian economic data, which kept activity restrained.

U.S. equities moved slightly higher through the week. Investors grew more confident that the Federal Reserve may move toward rate cuts, which helped steady buying interest. Strength in several large companies, including firms tied to travel and industrial activity, added a bit of support to overall sentiment.

Canadian bond prices moved lower through the week. The market stayed cautious ahead of domestic jobs data, which limited demand for fixed income. A firm Canadian dollar and a steady global rate backdrop added mild pressure on bond prices.

The Canadian dollar strengthened over the week. The currency held near a recent high as rising oil prices and stable market conditions supported demand. Confidence around upcoming economic releases also helped keep the dollar firm.

2. What does it mean for Embark Funds?

Asset class	Change	Impact on cohorts
Canadian Equities	↓	Slightly negative for younger cohorts with higher equity exposure.
U.S. Equities	↑	Positive for younger cohorts with more U.S. growth exposure. Improving sentiment around potential Fed rate cuts supported equity holdings.
Bonds	↓	Slightly negative for older cohorts focused on income and stability. A cautious tone ahead of economic data and mild rate pressures weighed on bond prices.
Money Market	↑	Slightly up, with short-term holdings remaining steady.
Canadian Dollar	↑	Slightly negative for cohorts holding U.S. assets. A stronger Canadian dollar reduces the translated value of U.S. investments, creating a small currency drag.