Market Recap* – Week of October 5, 2026

1. What happened in the markets?

Canadian equities moved higher over the week as weaker-than-expected Canadian employment data reduced expectations for additional Bank of Canada interest rate hikes. Canada’s economy lost 68,300 jobs in September, compared to expectations for a gain of 9,200 jobs, while the unemployment rate increased to 6.5%. Investors viewed the softer labour market as reducing the likelihood of further policy tightening, supporting equity valuations. Performance over the week was led by technology, energy, and consumer discretionary sectors.

U.S. equities moved higher over the week as optimism around artificial intelligence continued to support technology stocks and broader market sentiment. Markets remained resilient despite elevated Treasury yields and ongoing uncertainty around the interest rate outlook. Energy and Communication services led the way over the week.

Canadian fixed income markets moved higher over the week. Expectations for a less aggressive path for future interest rates provided support for bond prices despite yields remaining elevated by historical standards.

Money market investments recorded modest gains over the week. Supported by the prevailing short-term interest rate environment, the asset class continued to provide stable income and low volatility.

The Canadian dollar weakened against the U.S. dollar over the week. Wider Canada-U.S. yield differentials and ongoing trade uncertainty continued to weigh on the Canadian currency, while higher U.S. yields supported the U.S. dollar.

2. What does it mean for Embark Funds?

Asset class	Change	Impact on cohorts
Canadian Equities	↑	Positive for cohorts with higher Canadian equity exposure. Softer economic data reduced rate hike expectations and supported equity markets.
U.S. Equities	↑	Positive for growth-oriented cohorts. Continued optimism around artificial intelligence supported market gains.
Bonds	↑	Positive for conservative cohorts. Expectations for a less aggressive interest rate path supported fixed income returns.
Money Market	↑	Continued to generate modest positive returns, supported by prevailing short-term interest rates and stable market conditions.
Canadian Dollar	↓ CAD	Positive for portfolios with foreign exposure. A weaker Canadian dollar increased the value of international holdings when translated back into Canadian dollars.