Market Recap* – Week of June 22, 2026

1. What happened in the markets?

Canadian equities moved higher over the week, posting a modest gain from last week. Gains were supported by strength in consumer staples and industrials. However, these advances were offset by weakness in materials, which declined sharply, along with losses in energy and telecom services. Lower oil prices weighed on energy stocks, while broader softness in commodity-related sectors limited overall momentum. As a result, strength in defensive and cyclical sectors were slightly offset by declines elsewhere, leaving the index in a net positive.

U.S. equities declined over the week, driven primarily by weakness in technology and communication services. Investor sentiment remained cautious as concerns around valuations and rising costs tied to artificial intelligence spending weighed on large-cap technology companies. A broader pullback in semiconductor stocks also contributed to the decline, as investors took profits following a strong prior rally. Overall, widespread weakness in growth-oriented sectors drove the broader market lower.

Canadian fixed income markets were largely unchanged over the week, with bond prices remaining steady. Prices moved only slightly as investors balanced expectations for higher interest rates with signs that inflation pressures may begin to stabilize. As a result, there was limited movement in bond markets, with no clear directional trend during the period.

Money market investments were almost flat over the week and remained stable. Short term instruments continued to provide consistent returns, reflecting a steady interest rate environment. 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. A stronger U.S. dollar, supported by expectations that interest rates may remain elevated, continued to put pressure on the currency. At the same time, lower oil prices reduced support for the Canadian dollar, contributing to its decline during the period.

2. What does it mean for Embark Funds?

Asset class	Change	Impact on cohorts
Canadian Equities	↑	Positive impact for younger cohorts. Gains in defensive sectors such as consumer staples and industrials were offset by declines in materials and energy.
U.S. Equities	↓	Negative for growth-oriented cohorts. Weakness in technology and communication services drove overall losses despite strength in defensive sectors.
Bonds	→	Neutral for conservative cohorts. Stable bond prices provided consistency but offered limited offset to equity market declines.
Money Market	→	Continued to support capital preservation strategies. Stable returns provided a reliable source of income.
Canadian Dollar	↓ CAD	Benefited portfolios with foreign exposure. A stronger U.S. dollar increased the value of international holdings for Canadian investors.