Finance
The Fed just convinced markets it's not behind the curve
The Federal Reserve’s half-percentage-point interest rate cut could have shaken markets had it exacerbated investor fears that the central bank was preparing for an economic slowdown.
Instead, Fed Chair Powell appears to have convinced investors the central bank is cutting rates to keep the economy on track, not to save it. Stocks surged Thursday following Powell’s press conference after the rate cut decision.
“Chair Powell had one job at his post-FOMC press conference today: convince markets that a 50 bp cut was consistent with a thoughtful policy adjustment rather than a sign that the Fed is worried it is behind the curve,” DataTrek co-founder Nicholas Colas wrote in a note to clients Wednesday night. “He accomplished that goal … This is consistent with prior mid-cycle markets, where equities can continue to rally.”
Investors had been increasingly expecting a soft landing, where the Fed’s aggressive tightening cycle ends with inflation falling to the 2% target without a significant downturn in the economy. On Wednesday, Chair Powell reiterated that scenario remains in play.
Powell remarked the US economy is “in good shape.” He pointed out that risks to further cooling in the labor market have risen. But the Fed is cutting with that in mind.
“The labor market is actually in solid condition,” he said. “And our intention with our policy move today is to keep it there.”
To Colas, the comments change little about the market narrative.
“[The Fed] decision doesn’t actually change very much about the current market setup,” Colas wrote. “We know that rates are coming down. We know that the US economy is in reasonably good shape. We know the labor market is cooling but not yet tipping over. While the Fed may have been somewhat clumsy in how it conditioned markets to expect today’s decision, that’s now in the past.”
In the day following Chair Powell’s press conference, the S&P 500 (^GSPC) and Dow Jones Industrial Average (^DJI) rushed to new record highs, while the Nasdaq Composite (^IXIC) rose over 2%.
Markets are showing familiar price action too, with the largest tech stocks leading the charge higher on Wednesday. Nvidia (NVDA) rose more than 4% on Thursday, while Apple (AAPL) and Meta (META) popped more than 3%. The Information Technology sector (XLK) as a whole rose more than 3.3%, outpacing the S&P 500’s 1.8% gain.
Citi US equity strategist Scott Chronert described the rotation into large-cap tech on Thursday as “a catch-up move” into a section of the market that will likely benefit from interest rate cuts but hadn’t been leading the rally since the S&P 500’s last record close on July 16.
Chronert pointed out that further deterioration in the labor market remains a key risk to the current rally, as it would potentially imply a recession. This could still bring some choppiness to trading action if economic data surprises to the downside.
“We’re going to have to be navigating still [if this is a] soft landing versus, gosh, there’s still some lingering hard-landing risk out there,” Chronert told Yahoo Finance.
Josh Schafer is a reporter for Yahoo Finance. Follow him on X @_joshschafer.
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Written by Jitendra Parashar at The Motley Fool Canada
Dividend investing can be one of the simplest ways to build long-term wealth while creating a steady stream of passive income. But in my opinion, a good dividend stock is about much more than just a high yield. Beyond dividend yield, investors should also look for companies with durable businesses, reliable cash flows, and a history of rewarding shareholders consistently over time.
That’s exactly why many investors turn to financial stocks. Banks and asset managers often generate recurring earnings through lending, investing, and wealth management activities, allowing them to support stable dividend payments even during uncertain market conditions.
Two Canadian financial stocks that stand out right now are AGF Management (TSX:AGF.B) and Toronto-Dominion Bank (TSX:TD). Both companies offer attractive dividends backed by solid financial performance and long-term growth strategies. In this article, I’ll explain why these two financial stocks could be worth considering for income-focused investors right now.
AGF Management stock continues to reward shareholders
AGF Management is a Toronto-based asset manager with businesses across investments, private markets, and wealth management. Through these divisions, the company offers equity, fixed income, alternative, and multi-asset investment strategies to retail, institutional, and private wealth clients.
Following a 59% rally over the last 12 months, AGF stock currently trades at $16.67 per share with a market cap of roughly $1.1 billion. At current levels, the stock offers a quarterly dividend yield of 3.3%.
One reason behind AGF’s strong recent performance is its increasingly diversified business model. The company has expanded its investment capabilities and broadened its geographic reach, helping it perform well across varying market environments.
In the first quarter of its fiscal 2026 (ended in February), AGF posted free cash flow of $36 million, up 14% year over year (YoY), driven mainly by higher management, advisory, and administration fees. These fees climbed to $92.5 million as demand for the company’s investment offerings strengthened.
AGF has also been focusing on expanding its alternative investment business and introducing new investment products. With strong cash generation and growing demand for alternative investments, AGF Management looks well-positioned to continue rewarding investors over the long term.
TD Bank stock remains a dependable dividend giant
Toronto-Dominion Bank, or TD Bank, is one of North America’s largest banks, serving millions of customers through its Canadian banking, U.S. retail banking, wealth management and insurance, and wholesale banking operations.
Finance
Martha Aguirre, former El Paso ISD interim superintendent, resigns as CFO as district finds ‘key financial challenges’
El Paso Independent School District Chief Financial Officer Martha Aguirre, who served as interim superintendent last year, resigned this week as the district said it had discovered “key financial challenges.”
The district issued a news release late Thursday afternoon that lacked details but indicated that a recent review had raised questions about the district’s fund balances, a key indicator of financial health.
“Through this process, key financial challenges were identified that must be addressed prior to closing out the 2025-26 school year including a current budget shortfall that is being actively addressed ahead of the district’s final financial presentation to the Board of Trustees in June,” the news release said.
A CFO is charged with developing a school district’s budget and overseeing its finance department. The EPISD Board of Trustees must adopt a budget for the 2026-27 school year by the end of the fiscal year June 30. The operating budget for the current school year is $547 million.
EPISD Deputy Superintendent David Bates will oversee the budget while the district searches for an interim and permanent CFO, district officials said in a statement.
EPISD Board President Leah Hanany said trustees were notified about Aguirre’s resignation this week. She said the district plans to give the public more information on the current year’s budget during a board meeting later this month.
“The board was also notified of a potential budget shortfall for the 2025 budget, but we don’t have final numbers yet. My understanding is that we are still primed to pass a balanced budget for fiscal year 2026-27 in June,” Hanany said in a statement.
Aguirre could not be reached for comment. EPISD’s CFO makes $148,200 to $209,900 a year, according to the district’s administrative pay plan.
She served as EPISD’s interim superintendent from June to December 2025 after the district’s former superintendent, Diana Sayavedra, resigned under pressure from the board. She returned to her position as CFO when Brian Lusk was hired as EPISD’s new permanent superintendent.
Aguirre’s resignation comes amid an uncertain budget season after a state funding calculation error tied to school property tax breaks caused EPISD to lose out on $17 million in projected revenue. In late April, EPISD officials estimated it would cause the district’s spending to exceed its revenue next year by $10 million.
The district is also considering calling for a bond election in November to upgrade its aging campuses as part of the larger 2024 Destination District Redesign initiative to close schools and improve the ones that remain open.
El Paso Teachers’ Association President Norma De La Rosa said Aguirre’s departure was unexpected.
“We’re right in the middle of the committee meetings for a possible bond and getting ready to get that budget to the June board meeting for next school year. So, to say that I’m highly surprised is an understatement,” De La Rosa told El Paso Matters.
Aguirre started working with the district in 1996 as a general clerk, according to a video published by the district.
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