Market Recap* – Week of September 14, 2026

1. What happened in the markets?

Canadian equities moved higher over the week, snapping a four-week losing streak despite ongoing concerns around rising bond yields and elevated energy prices. Investors continued to assess the implications of higher borrowing costs, while government measures aimed at encouraging business investment provided some support to market sentiment. Sector performance was led by health care, utilities, and financials, while consumer discretionary, telecom services, and real estate were the weakest sectors. Broad-based strength across several defensive sectors helped support the market despite weakness in interest rate-sensitive areas.

U.S. equities moved lower over the week as investors assessed the implications of the Federal Reserve’s first interest rate hike in three years and the prospect of additional policy tightening. Higher borrowing costs and persistent inflation concerns continued to influence market sentiment. Sector performance was mixed, with technology outperforming while other rate-sensitive sectors remained under pressure.

Canadian fixed income markets moved higher over the week, with bond prices posting gains. Despite ongoing concerns around inflation, elevated bond yields, and tighter monetary policy, fixed income markets recovered from the prior week’s weakness and delivered positive returns during the period.

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 moved lower against the U.S. dollar over the week as the Federal Reserve adopted a more hawkish policy stance. Expectations for additional policy tightening and persistent inflation concerns supported the U.S. dollar and weighed on the Canadian currency during the period.

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 defensive sectors such as health care, utilities, and financials supported market gains.
U.S. Equities	↓	Negative for growth-oriented cohorts. Equity markets declined due higher interest rates and persistent inflation concerns.
Bonds	↑	Positive for conservative cohorts. Fixed income markets recovered from the prior week’s weakness and contributed positively to portfolio 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.