Market Recap* – Week of June 15, 2026

1. What happened in the markets?

Canadian equities moved slightly higher over the week, supported by improving global sentiment. Progress toward a potential resolution in the Middle East helped reduce uncertainty around energy markets and inflation, which supported risk assets. Gains were led by financials and materials, which posted solid increases. However, much of the market saw weakness alongside a sharp drop in energy as oil prices fell during the week. Overall, gains in a few key sectors were enough to offset broader softness and support a modest increase in the index.

U.S. equities moved higher over the week, supported by strong gains in technology and industrial stocks. Markets were volatile mid-week after the Federal Reserve held interest rates steady and signaled that borrowing costs could rise later in the year, which briefly weighed on sentiment. However, equities recovered toward the end of the week as optimism around improving geopolitical conditions supported risk appetite.

Canadian fixed income markets edged higher over the week, with bond prices rising slightly. Markets experienced some volatility mid-week following the Federal Reserve’s more hawkish tone, which raised expectations that interest rates may remain elevated. However, bond prices stabilized later in the week as market conditions improved, and inflation concerns became more balanced.

Money market investments continued to move slightly higher and remained stable over the week. Short term instruments benefited from a steady interest rate environment, providing consistent returns. This asset class remained relatively insulated from broader market volatility and continued to support capital preservation strategies.

The Canadian dollar weakened against the U.S. dollar over the week, reaching multi-month lows. A stronger U.S. dollar, supported by expectations of higher interest rates following the Federal Reserve’s update, put pressure on the currency. At the same time, lower oil prices reduced support for the Canadian dollar, contributing further to its decline.

2. What does it mean for Embark Funds?

Asset class	Change	Impact on cohorts
Canadian Equities	↑	Positive for younger cohorts with higher equity exposure.
U.S. Equities	↑	Positive for growth-oriented cohorts. Market gains were driven by improving sentiment.
Bonds	↑	Slightly positive for conservative cohorts. Modest gains helped stabilize portfolios after mid-week volatility driven by rate expectations.
Money Market	↑	Continued to support capital preservation strategies. Stable and consistent returns provided reliable income.
Canadian Dollar	↓ CAD	Benefited portfolios with foreign exposure. A stronger U.S. dollar and weaker oil prices increased the value of international holdings.