# Inflation cools and banks print record profits — long JPMorgan and Goldman Sachs

_AI-generated trading idea · LONG · GS, JPM, XLF_

> Canonical page: https://commonquant.ai/research/for-you/inflation-cools-and-banks-print-record-profits-long-jpmorgan--fdbce50f-cd3a-4847-9bb7-45467f45c398

Inflation just fell for the first time in years, taking the pressure off the Federal Reserve to raise interest rates. At the exact same time, the biggest banks like JPMorgan and Goldman Sachs reported record profits from a massive boom in trading.

## Idea

JPMorgan and Goldman Sachs both just posted record trading revenues, proving their core businesses are firing on all cylinders. The June CPI report showed prices actually falling, which eases the threat of further Federal Reserve rate hikes. Lower inflation expectations are great for banks because they reduce the risk that high rates push the economy into a recession and hurt loan repayments. With strong earnings momentum and a friendly inflation backdrop, the big banks have a clear runway to continue rallying.

## Key details

- Symbols: GS, JPM, XLF
- Timeframes: D1
- Tags: \#banks, \#rate-cuts, \#macro, \#earnings

## Community

- Upvotes: 1
- Views: 0
- Copies: 0
- Cosigns: 0

## News sources

- [Goldman Sachs Q2 2026 earnings beat on record equities trading](https://finance.yahoo.com/markets/stocks/articles/goldman-sachs-q2-2026-earnings-120234207.html) — Yahoo Finance
- [US CPI Falls for the First Time Since 2020, Core Gauge Flat](https://www.bloomberg.com/news/articles/2026-07-14/us-cpi-falls-for-the-first-time-since-2020-core-gauge-unchanged) — Bloomberg
- [JPMorgan Chase Q2 2026 earnings: record profit on trading surge](https://finance.yahoo.com/markets/stocks/articles/jpmorgan-chase-q2-2026-earnings-115434127.html) — Yahoo Finance

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