Market Recap* – Week of May 18, 2026

1. What happened in the markets?

Canadian stocks edged higher over the week, supported by broad gains across most sectors. Information technology and utilities were the top performing sectors, while materials was the weakest performing sector. Investors were also looking ahead to quarterly earnings from Canada’s major banks, due this week.

U.S. stocks rose over the week, with the S&P 500 posting its eighth straight weekly gain, the longest winning streak since 2023. Utilities and healthcare led the gains, while communication services was the only sector to finish in the red. Markets started the week cautiously but sentiment improved after both the U.S. and Iran signaled some progress in peace talks. Kevin Warsh was also sworn in as the new Federal Reserve Chair on Friday.

Canadian bond prices edged higher over the week. Statistics Canada released its April inflation report on May 19, showing that while overall prices rose due to higher energy costs from the Middle East conflict, the cost of everyday goods and services outside of energy was rising more slowly than expected. This reduced concerns about the Bank of Canada needing to raise interest rates, which gave bond prices a modest lift.

The money market holding was essentially unchanged over the week, edging up by a very small amount. Short-term investments continued to provide a calm and reliable return during the week.

The Canadian dollar weakened against the U.S. dollar over the week. Uncertainty around the outcome of U.S.-Iran negotiations kept investor caution elevated, weighing on the loonie. Elevated oil prices provided some support for the Canadian dollar given Canada’s role as a major energy exporter but were not enough to offset the broader headwinds over the week.

2. What does it mean for Embark Funds?

Asset class	Change	Impact on cohorts
Canadian Equities	↑	Positive for younger cohorts with higher equity exposure. Canadian stocks edged higher as information technology and utilities led broad gains across most sectors.
U.S. Equities	↑	Positive for younger, growth-oriented cohorts. The S&P 500 posted its eighth straight weekly gain, supported by progress in U.S.-Iran peace talks and broad sector strength.
Bonds	↑	Positive for older and more conservative cohorts. Bond prices edged higher as softer than expected core inflation data reduced concerns about near-term interest rate increases.
Money Market	↑	Continued to support older cohorts and capital-preservation strategies. Short-term returns remained stable and predictable.
Canadian Dollar	↓ CAD	A modest positive for cohorts with foreign asset exposure. The weaker Canadian dollar increased the translated value of U.S. and other foreign holdings when converted back to Canadian dollars.