Market Recap* – Week of June 1, 2026

1. What happened in the markets?

Canadian equities moved lower over the week as the market pulled back after earlier gains. Investor sentiment weakened amid ongoing uncertainty around global growth and interest rate expectations, which weighed on the domestic market. The decline was broad based, with losses across several sectors.

U.S. equities also moved lower over the week after reaching highs earlier in the period. A stronger than expected jobs report, with the economy adding 172,000 jobs, reinforced expectations that interest rates may remain elevated. This led to a pullback in markets, particularly in technology stocks, which had driven gains in prior weeks.

Canadian fixed income markets declined over the week, with bond prices falling as investors adjusted to higher interest rate expectations. Strong economic data, especially from the U.S., suggested that borrowing costs may stay higher for longer, which put pressure on bond prices. Canadian bonds moved in line with global markets as investors reduced exposure to interest rate-sensitive assets.

Money market investments edged higher over the week and remained stable and short-term investments continued to provide steady and consistent returns. This helped support portfolios during a week of broader market weakness.

The Canadian dollar weakened against the U.S. dollar over the week. Stronger U.S. economic data increased expectations that interest rates may stay high, which made U.S. investments more attractive and lifted the U.S. dollar. This put downward pressure on the Canadian dollar during the period.

2. What does it mean for Embark Funds?

Asset class	Change	Impact on cohorts
Canadian Equities	↓	Negative for younger cohorts with higher equity exposure. Broad market declines reduced portfolio growth, particularly in cyclical and growth-oriented holdings.
U.S. Equities	↓	Negative for growth-oriented cohorts. The pullback following strong economic data pressured equity returns after a period of gains.
Bonds	↓	Negative for conservative cohorts. Falling bond prices reduced the stabilizing effect of fixed income within diversified portfolios.
Money Market	↑	Continued to support capital preservation strategies. Stable returns helped offset broader market weakness.
Canadian Dollar	↓ CAD	Benefited portfolios with foreign exposure. A stronger U.S. dollar increased the value of international holdings for Canadian investors.