Market Recap* – Week of February 16, 2026

1. What happened in the markets?

Canadian equities extended gains into February 20, supported by strength in technology and materials shares. Recent data showed retail sales fell in December, but early estimates suggest spending likely picked up again in January, which reassured investors that consumers remain active early this year. At the same time, higher metal prices increased some business costs, highlighting mixed but steady domestic economic conditions.

U.S. stocks rose last week as investors welcomed a U.S. Supreme Court decision that reduced uncertainty around future tariffs. At the same time, new survey data showed that business activity in both manufacturing and services slowed to its weakest pace in about ten months, with companies reporting softer new orders and more cautious outlooks. While economic growth is still positive, the data suggests the pace of expansion is moderating, creating a mixed but stable backdrop for markets.

Canadian bond yields remained under modest pressure with limited fresh catalysts; soft inflation and mixed growth signals kept fixed income instruments relatively steady while markets balanced domestic economic slack against external trade developments.

Money market instruments edged slightly higher, reflecting stable short-term rate expectations as investors awaited further economic releases while risk sentiment improved late in the week.

The Canadian dollar weakened last week. In addition to broad U.S. dollar strength, mixed Canadian economic data and record high oil prices weighed on the loonie, since Canada’s currency is closely tied to commodity exports. Ongoing trade uncertainty and global tensions also pushed investors toward the U.S. dollar as a safer option, adding further pressure on the CAD.

2. What does it mean for Embark Funds?

Asset class	Change	Impact on cohorts
Canadian Equities	↑	Positive for younger cohorts with higher equity exposure. Gains were supported by strength in materials and technology shares, even as domestic retail sales data showed some softness.
U.S. Equities	↑	Positive for younger, growth-oriented cohorts. Markets rose after policy uncertainty eased, despite signs that business activity slowed.
Bonds	↑	Mixed growth data and contained inflation supported steady bond prices.
Money Market	↑	Continued to support older cohorts seeking low-risk, stable returns, with steady short term interest accrual.
Canadian Dollar	↓ CAD	A weaker Canadian dollar modestly boosted foreign returns for growth-oriented portfolios with U.S. exposure, reflecting stronger U.S. dollar demand and stronger commodity support.