Market Recap* – Week of February 2, 2026

1. What happened in the markets?

Canadian equities finished the week higher, despite uneven trading earlier on. Sentiment during the week was influenced by signs that domestic business activity is slowing, with survey data pointing to softer momentum across parts of the economy. Late in the week, Canadian jobs data showed employment weakening, reinforcing concerns about cooling growth rather than strength in the labor market. Even so, equity markets found support as resource and materials stocks rebounded, helping the TSX recover and close the week stronger.

U.S. equities ended the week modestly lower after a volatile stretch, since Large-cap U.S. technology stocks sold off during the week as artificial intelligence–related concerns reemerged.

Canadian bond prices were broadly flat over the week. While equity markets were volatile, fixed income prices remained stable as investors balanced periods of risk-off sentiment with the late-week recovery in stocks. Overall, bonds continued to play a stabilizing role in portfolios, with little net price movement.

Money market instruments were broadly unchanged over the week. Short-term securities remained stable, reflecting steady conditions in short-term funding markets and no major changes in monetary policy expectations.

The Canadian dollar weakened over the week against the U.S. dollar. Despite the rebound in Canadian equities, the currency softened as the U.S. dollar found support and investors remained cautious toward risk-sensitive currencies. Mixed domestic data and global uncertainty continued to weigh on the Loonie.

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 equities finished the week higher, recovering from early volatility as resource and cyclical sectors rebounded.
U.S. Equities	↓	Slightly negative for younger, growth-oriented cohorts. U.S. equities ended the week modestly lower after choppy trading, as mixed economic signals kept investor sentiment cautious.
Bonds	→	Neutral for older and more conservative cohorts. Canadian bond prices were broadly flat over the week, continuing to provide portfolio stability amid equity volatility.
Money Market	→	Neutral for capital-preservation strategies. Money market investments were flat over the week, reflecting stable short-term conditions and no material change in rates.
Canadian Dollar	↓ CAD	The weaker Canadian dollar modestly benefited portfolios with foreign asset exposure, particularly growth-oriented portfolios with U.S. holdings.