Market Recap* – Week of July 13, 2026

1. What happened in the markets?

Canadian equities moved lower over the week as weakness in technology and other growth-oriented sectors weighed on investor sentiment. Concerns around the outlook for AI related investments and a broader selloff in semiconductor stocks spilled over into Canadian markets, putting pressure on technology shares. Sector performance was mixed during the week. Energy was a bright spot, supported by higher oil prices, while weakness in technology and materials weighed on the broader market. As a result, gains in a few sectors were not enough to offset declines elsewhere.

U.S. equities declined over the week as investor sentiment weakened and markets pulled back from recent highs. Ongoing concerns around technology stocks and the pace of spending on artificial intelligence continued to weigh on parts of the market, while escalating tensions in the Middle East added to uncertainty. Sector performance was mixed. Energy was the strongest performer as higher oil prices supported the sector, while defensive areas of the market also held up relatively well. In contrast, technology, communication services, and consumer discretionary stocks declined, weighing on the broader index. Despite some support from corporate earnings, softer than expected inflation data, and resilient consumer spending, weakness across several major sectors led the market lower for the week.

Canadian fixed income markets moved higher over the week, with bond prices posting modest gains. Softer-than-expected U.S. inflation data reduced concerns about additional interest rate hikes and provided support for fixed income markets. This helped bond prices increase modestly during the period.

Money market investments edged slightly higher over the week and remained stable overall. Short term instruments continued to provide consistent returns, supported by a relatively steady interest rate environment.

The Canadian dollar strengthened against the U.S. dollar over the week, reaching a one-month high. Softer-than-expected U.S. inflation data reduced expectations for additional Federal Reserve rate hikes, while higher oil prices provided further support for the currency.

2. What does it mean for Embark Funds?

Asset class	Change	Impact on cohorts
Canadian Equities	↓	Lower returns for cohorts with higher Canadian equity exposure, as weakness across several sectors outweighed gains in energy.
U.S. Equities	↓	Growth-oriented cohorts were impacted by declines in technology and communication services stocks.
Bonds	↑	Positive for more conservative cohorts, with fixed income providing stability during a weaker week for equities.
Money Market	↑	Continued to provide steady returns and preserve capital in a relatively low-volatility environment.
Canadian Dollar	↑ CAD	Reduced the value of foreign holdings when translated back into Canadian dollars, creating a modest headwind for internationally diversified portfolios.