Market Recap* – Week of February 9, 2026

1. What happened in the markets?

Canadian equities moved higher, supported by improving global sentiment after softer U.S. inflation data. Lower inflation increased expectations that interest rates could decline later this year, which helped lift commodity prices. Strength in materials and energy contributed meaningfully to the TSX’s advance.

U.S. equities finished lower overall despite the softer inflation report. The weakness was concentrated in large technology stocks, particularly areas that had previously led the market higher on strong AI-related growth expectations. The pullback appeared driven more by valuation adjustments and profit taking than by a deterioration in economic data.

Canadian bond prices edged higher as cooling U.S. inflation supported expectations for future rate cuts. When rate expectations move lower, bond prices typically benefit. Fixed income continued to provide stability alongside uneven equity markets.

Money market instruments posted modest gains. Movements were small and reflected steady short term interest accrual rather than market volatility. Cash continued to provide stability and capital preservation.

The Canadian dollar strengthened slightly against the U.S. dollar. Softer U.S. inflation weighed on the U.S. currency and supported the loonie. Stabilizing oil prices also provided some underlying support.

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 softer U.S. inflation, firmer commodity prices, and strength in materials and energy sectors.
U.S. Equities	↓	Slightly negative for younger, growth-oriented cohorts. The weekly pullback was driven mainly by valuation pressure and profit taking in large technology stocks, despite softer inflation data.
Bonds	↑	Price gains benefited older cohorts focused on stability and capital preservation, as cooling inflation strengthened expectations for future rate cuts.
Money Market	↑	Modest price gains continued to support older cohorts seeking low-risk, stable returns, with steady short term interest accrual.
Canadian Dollar	↑ CAD	A stronger Canadian dollar slightly reduced foreign return tailwinds for growth-oriented portfolios with U.S. exposure.