Market Recap* – Week of July 20, 2026

1. What happened in the markets?

Canadian equities moved higher over the week as investors largely shrugged off the latest U.S. tariff announcements, with markets showing less sensitivity to trade headlines than earlier in the year. Strength in materials and energy stocks, supported by strength in commodity-related sectors during the week, helped offset weakness in technology, telecom services, and consumer discretionary sectors. Despite ongoing trade uncertainty, gains in commodity-related sectors were enough to lift the TSX to a modest weekly gain.

U.S. equities moved lower over the week as investors became increasingly cautious about the level of spending required to support artificial intelligence initiatives and the potential impact on future profitability. Despite gains in materials, utilities, industrials, and healthcare, weakness in communication services and consumer discretionary stocks led the broader market lower for the week.

Canadian fixed income markets moved lower over the week, with bond prices declining as rising oil prices and escalating tensions in the Middle East increased inflation concerns. Investors also reassessed the interest rate outlook ahead of the upcoming Federal Reserve meeting, leading to expectations that interest rates could remain elevated for longer.

Money market investments delivered steady performance over the week. Returns remained supported by short term interest rates, helping preserve capital amid broader market volatility.

The Canadian dollar weakened against the U.S. dollar over the week. Trade-related uncertainty and the prospect of additional U.S. tariffs on Canadian goods weighed on sentiment toward the currency.

2. What does it mean for Embark Funds?

Asset class	Change	Impact on cohorts
Canadian Equities	↑	Positive for cohorts with higher Canadian equity exposure. Strong gains in materials and energy helped offset weakness in technology and consumer-oriented sectors.
U.S. Equities	↓	Negative for growth-oriented cohorts. Concerns around AI-related spending and weakness in communication services and consumer discretionary stocks weighed on returns.
Bonds	↓	Negative for conservative cohorts. Rising inflation concerns and higher interest rate expectations contributed to lower bond prices.
Money Market	↑	Continued to deliver modest positive returns, supported by the prevailing interest rate environment.
Canadian Dollar	↓ CAD	Benefited portfolios with foreign exposure. A weaker Canadian dollar increased the value of international holdings when translated back into Canadian dollars.