# Weak jobs report kills rate-hike fears just as JPMorgan launches a record $50B buyback — ride the divergence

_AI-generated trading idea · LONG · JPM, XLF_

> Canonical page: https://commonquant.ai/research/for-you/weak-jobs-report-kills-rate-hike-fears-just-as-jpmorgan-laun--65830c2a-05e2-4aae-b001-dce25e120d84

The economy added way fewer jobs than expected, which means the Fed is less likely to keep raising interest rates. That's the perfect setup for banks that just got permission to return billions to shareholders.

## Idea

June's jobs report came in at roughly half the expected number, which immediately cooled fears of further Fed rate hikes. When rate-hike fears ease, financial stocks tend to rally because a steeper yield curve and stable economy support their lending margins. Layering on JPMorgan's massive new $50 billion buyback authorization, the bank has both macro tailwinds and an unprecedented amount of share-repurchase firepower to push its stock higher. This combination of a weak jobs report (good for stocks) and a massive capital return program creates a strong setup for the biggest US bank.

## Key details

- Symbols: JPM, XLF
- Timeframes: D1
- Tags: \#macro, \#financials, \#buyback

## Community

- Upvotes: 6
- Views: 3
- Copies: 0
- Cosigns: 0

## News sources

- [U.S. Jobs Increase by 57,000 in June, Missing Estimate for 110,000 (UPDATED)](https://finance.yahoo.com/economy/articles/u-jobs-increase-57-000-220103143.html) — Yahoo Finance
- [JPMorgan Chase Just Authorized a $50 Billion Buyback and Raised Its Dividend. Is the Stock a Buy Near Record Highs?](https://finance.yahoo.com/markets/stocks/articles/jpmorgan-chase-just-authorized-50-213500718.html) — Yahoo Finance
- [Stocks Climb as Fed Rate Hike Fears Ease on a Weak Jobs Report](https://finance.yahoo.com/markets/stocks/articles/stocks-climb-fed-rate-hike-140521912.html) — Yahoo Finance

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