# Big Tech is tanking but banks just got the green light to buy $50B of stock — rotate into JPM and small caps

_AI-generated trading idea · LONG · IWM, JPM_

> Canonical page: https://commonquant.ai/research/for-you/big-tech-is-tanking-but-banks-just-got-the-green-light-to-bu--6814ab0f-9f65-408b-aa12-052b27952bfa

While Big Tech stocks drag the major indexes down, banks just got a green light for massive stock buybacks and smaller companies are having their best first half in three decades. The smart money is rotating into the parts of the market that don't depend on AI hype.

## Idea

The S&P 500 is teetering on the edge of a major breakdown entirely due to tech weakness. Yet beneath the surface, JPMorgan and Goldman Sachs just announced massive $50 billion buybacks and dividend hikes after passing Fed stress tests. Simultaneously, small-cap stocks are on pace for their best first-half since 1991. This combination suggests a stealth rotation: institutional money is fleeing expensive, volatile tech stocks and flowing into financially stable banks and smaller companies. Buying the small-cap index (IWM) captures this defensive rotation perfectly.

## Key details

- Symbols: IWM, JPM
- Timeframes: D1
- Tags: \#rotation, \#small\_cap, \#financials, \#defensive

## Community

- Upvotes: 13
- Views: 0
- Copies: 0
- Cosigns: 0

## News sources

- [The S&P 500 is at a critical crossroads. A break lower could signal more losses ahead.](https://www.marketwatch.com/story/the-s-p-500-is-at-a-critical-crossroads-a-break-lower-could-signal-more-losses-ahead-f425063c?mod=mw_rss_topstories) — MarketWatch
- [Small caps are booming this year. Here are Wall Street's top smaller picks](https://www.cnbc.com/2026/06/25/small-caps-are-booming-this-year-here-are-wall-streets-top-picks-.html) — CNBC
- [JPMorgan Chase unveils $50 billion buyback, Goldman Sachs raises dividend after Fed stress test](https://www.cnbc.com/2026/06/24/jpmorgan-goldman-sachs-fed-stress-test.html) — CNBC

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