Market Recap* – Week of July 6, 2026

1. What happened in the markets?

Canadian equities moved higher over the week, supported by stronger than expected domestic economic data and improving investor sentiment. Canada added 18,200 jobs in June while the unemployment rate edged lower, helping reinforce confidence in the economic outlook. Gains were led by energy, consumer staples, financials, and information technology. Weakness was concentrated in materials, real estate, and health care. Despite these pockets of weakness, broad-based strength across most sectors supported a modest advance in the Canadian market.

U.S. equities moved higher over the week, supported by renewed optimism around artificial intelligence and semiconductor-related stocks. Investor sentiment improved and expectations for the upcoming earnings season helped support broader markets. While the overall market advanced, sector performance was mixed. Energy was the strongest performer, benefiting from higher oil prices earlier in the week, while utilities, consumer defensive, and real estate also posted gains. Financials and consumer discretionary edged lower. Sector performance was mixed, with gains in energy and defensive sectors more than offsetting weakness in other areas of the market.

Canadian fixed income markets declined modestly over the week, with bond prices moving lower. Investors remained focused on inflation risks and the possibility that interest rates could remain elevated for longer than previously expected. Rising oil prices earlier in the week added to inflation concerns, contributing to pressure on bond prices despite some stabilization later in 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 steady interest rate environment. While gains were modest, money market investments continued to offer stability and support capital preservation strategies.

The Canadian dollar strengthened against the U.S. dollar over the week, posting its first weekly gain in six weeks. Strength in the Canadian employment data and higher energy prices earlier in the week provided support for the currency, helping improve sentiment toward the Canadian economic outlook.

2. What does it mean for Embark Funds?

Asset class	Change	Impact on cohorts
Canadian Equities	↑	Positive for younger cohorts with higher equity exposure. Broad strength across most sectors, particularly energy, financials, and consumer staples, supported portfolio growth.
U.S. Equities	↑	Positive for growth-oriented cohorts. Gains were supported by improving market sentiment and strength in selected sectors despite mixed overall sector performance.
Bonds	↓	Slightly negative for conservative cohorts. Modest declines in bond prices reduced the stabilizing effect typically provided by fixed income holdings.
Money Market	↑	Continued to support capital preservation strategies. Stable and consistent returns provided a reliable source of income.
Canadian Dollar	↑ CAD	Slightly negative for portfolios with foreign exposure. A stronger Canadian dollar reduced the value of international holdings when translated back into Canadian dollars.