Market Recap* – Week of May 4, 2026

1. What happened in the markets?

Canadian stocks rose over the week, with the TSX climbing above 34,000 on Friday. The materials sector led the market higher, and, on the earnings front, several Canadian companies reported results above expectations, providing an additional lift to the market. Statistics Canada released its April employment report on Friday May 8, showing the economy unexpectedly lost jobs during the month and the unemployment rate rose to a six-month high. The weaker domestic jobs data reinforced expectations that the Bank of Canada would hold off on raising interest rates at its next meeting, which helped support Canadian equity markets on the day.

U.S. stocks also rose, with the S&P 500 climbing to a new record on Friday. The U.S. market has been moving steadily higher since late March as technology led the way, supported in part by strong corporate earnings and hopes that the Strait of Hormuz conflict will not produce a worst-case scenario for the global economy. The U.S. Bureau of Labor Statistics also released its April jobs report on Friday May 8, showing the economy added well above the number of jobs analysts had forecast, while the unemployment rate held steady. The stronger than expected U.S. jobs data boosted confidence in the American economy and added further support to markets.

Canadian bond prices edged marginally higher over the week. The jobs data provided a lift to bond markets, as softer economic conditions reduced the likelihood of interest rate increases in the near term. When the prospect of rate hikes fades, bond prices tend to rise, as existing bonds become more attractive to hold. The improvement was modest but reflected a shift in sentiment toward a more stable rate environment for the weeks ahead.

Money markets edged up very slightly over the week, continuing to offer stable and predictable returns. Short-term investments continued to provide a reliable and calm source of income during a week of generally positive but uneven market conditions.

The Canadian dollar weakened against the U.S. dollar over the week. Weaker than expected domestic economic data reduced demand for the Canadian dollar, as it pointed to a slower pace of growth in the Canadian economy. With the U.S. releasing stronger than expected economic data the same day, investors favored the U.S. dollar over the Loonie by the Friday close.

2. What does it mean for Embark Funds?

Asset class	Change	Impact on cohorts
Canadian Equities	↑	Positive for younger cohorts. The TSX rose as materials stocks led gains and several Canadian companies reported stronger than expected earnings.
U.S. Equities	↑	Positive for younger, growth-oriented cohorts. The S&P 500 reached a new record, driven by strong corporate earnings and a better-than-expected U.S. jobs report.
Bonds	↑	Positive for older and more conservative cohorts. Bond prices edged higher as weak domestic jobs data reduced the likelihood of 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.