Market Recap* – Week of January 12, 2026

1. What happened in the markets?

Canadian stocks moved higher over the week. Investor confidence was supported by recent Canadian economic releases showing continued activity in housing, construction, and business spending. These reports suggested that the domestic economy remains resilient. Resource related companies also performed well as commodity markets stayed firm. Together, stable economic data and strength in key sectors helped lift Canadian equities.

U.S. equities finished the week slightly lower as investors weighed a combination of economic data and geopolitical developments. Headline CPI inflation for December came in at 2.7%, in line with expectations and continuing the gradual easing from the 3.0% peak seen in September. While the inflation reading helped reinforce the view that price pressures are moderating, markets appeared more influenced by rising geopolitical uncertainty. Comments surrounding potential U.S. involvement in Iran, along with renewed rhetoric related to Greenland, contributed to a more cautious tone, and prompted some profit-taking following recent gains.

Canadian bond prices edged higher during the week. Investors showed increased interest in bonds as equity markets experienced some uncertainty, particularly in the United States. This shift toward more stable investments supported prices across the Canadian bond market and reflected a preference for safety and income stability.

Money market investments remained relatively flat with small price improvements. These short-term instruments continued to be used as a safe place to hold cash. Investors favored their reliability and low volatility while waiting for clearer direction from economic data and markets.

The Canadian dollar weakened against the U.S. dollar over the week. This reflected stronger demand for the U.S. currency and ongoing uncertainty around global growth. Differences in economic momentum between Canada and the United States, along with cautious market sentiment, continued to place pressure on the Canadian dollar.

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 stable domestic economic data and strength in resource-related sectors.
U.S. Equities	↓	Slightly negative for younger, growth-oriented cohorts. U.S. markets softened as investors reacted to mixed economic data and uncertainty around future interest rate decisions.
Bonds	↑	Benefited older and more conservative cohorts. Higher bond prices provided stability and helped offset equity market volatility.
Money Market	↑	Continued to support older cohorts and capital-preservation strategies. Money market investments remained stable and provided a safe place to hold cash.
Canadian Dollar	↓ CAD	The weaker Canadian dollar modestly benefited portfolios with exposure to foreign assets, particularly those held by growth-oriented cohorts.