Market Recap* – Week of October 12, 2026

1. What happened in the markets?

Canadian equities moved higher over the week, supported by strength in energy and resource-related companies. Higher oil prices helped energy stocks, while precious metals also provided support. However, inflation and the outlook for interest rates remained important considerations for investors.

U.S. equities moved lower over the week, led by weakness in technology stocks. Investors became more cautious about the significant spending required to support artificial intelligence growth and whether future revenues will justify those investments. Higher-than-expected inflation also added to concerns that borrowing costs could remain elevated.

Canadian fixed income moved higher over the week, with bond prices posting modest gains. Lower bond yields during parts of the week and reduced expectations for a near-term Bank of Canada rate increase provided support, although inflation remained an important risk.

Money market investments posted modest gains and continued to provide steady income with limited volatility.

The Canadian dollar strengthened against the U.S. dollar over the week. A narrowing gap between Canadian and U.S. interest rates provided support for the currency, while higher oil prices also helped given Canada’s importance as an energy exporter.

2. What does it mean for Embark Funds?

Asset class	Change	Impact on cohorts
Canadian Equities	↑	Positive for cohorts with higher Canadian equity exposure. Strength in energy and resource-related companies helped support portfolio returns.
U.S. Equities	↓	Negative for growth-oriented cohorts. Weakness in technology and AI-related stocks weighed on U.S. equity performance.
Bonds	↑	Positive for more conservative cohorts. Higher bond prices provided stability and helped offset weakness in U.S. equities.
Money Market	↑	Continued to provide modest positive returns and portfolio stability.
Canadian Dollar	↓ CAD	A stronger Canadian dollar created a modest headwind for portfolios with U.S. and other foreign holdings when translated back into Canadian dollars.