Market Recap* – Week of September 21, 2026

1. What happened in the markets?

Canadian equities moved lower over the week as elevated bond yields, persistent inflation concerns, and ongoing trade-related uncertainty continued to weigh on investor sentiment. While easing oil prices provided some relief later in the week, rising interest rate expectations and higher borrowing costs remained key market headwinds. Sector performance was mixed, with technology benefiting from renewed optimism surrounding artificial intelligence, while telecom services lagged amid broader market weakness outside the technology sector.

U.S. equities moved higher over the week, supported by continued strength in technology stocks and optimism around artificial intelligence-related growth opportunities. Markets remained resilient despite higher bond yields and expectations for further Federal Reserve tightening. Sector performance was led by technology, while other rate-sensitive sectors remained under pressure.

Canadian fixed income markets moved lower over the week, with bond prices declining as rising government bond yields continued to pressure fixed income markets. Persistent inflation concerns and expectations that interest rates could remain elevated for longer also weighed on bond 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 weakened against the U.S. dollar over the week. Wider Canada-U.S. yield differentials, expectations for additional Federal Reserve tightening, and broad-based U.S. dollar strength weighed on the looney during the period.

2. What does it mean for Embark Funds?

Asset class	Change	Impact on cohorts
Canadian Equities	↓	Negative for cohorts with higher Canadian equity exposure. Higher bond yields and inflation concerns weighed on market performance, partially offset by strength in technology stocks.
U.S. Equities	↑	Positive for growth-oriented cohorts. Technology stocks and continued optimism around artificial intelligence supported market gains despite a challenging interest rate backdrop.
Bonds	↓	Negative for conservative cohorts. Rising bond yields and expectations for higher-for-longer interest rates weighed on 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.