# Tech tanks but banks pass the stress test — rotate into JPMorgan

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

> Canonical page: https://commonquant.ai/research/for-you/tech-tanks-but-banks-pass-the-stress-test-rotate-into-jpmorg--ffa897a5-159f-4028-99ff-0f1c556feaf1

While tech stocks have been dragging the market down, big banks just aced their annual health check by the Federal Reserve. This gives mega-banks like JPMorgan the green light to pump tens of billions of dollars into buying back their own stock.

## Idea

The broader market is currently being dragged down by a tech sell-off, but the financial sector is quietly setting up for a major breakout. Bloomberg reports that all big banks passed the Fed's stress test with flying colors, which immediately triggered a massive $50 billion buyback from JPMorgan and dividend hikes from Goldman Sachs. When companies buy back their own stock at this scale, it provides a massive floor under their share prices. With money flowing out of volatile tech stocks, this combination of Fed-approved safety and huge cash payouts makes the banking sector the perfect safe-haven trade.

## Key details

- Symbols: GS, JPM, XLF
- Timeframes: D1
- Tags: \#banks, \#rotation, \#stress\_test, \#value

## Community

- Upvotes: 12
- Views: 0
- Copies: 0
- Cosigns: 0

## News sources

- [Big Banks Pass Fed Stress Test, Paving Way for Payouts](https://www.bloomberg.com/news/articles/2026-06-24/big-banks-pass-fed-stress-test-paving-way-for-payouts) — Bloomberg
- [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
- [Nasdaq, S&P end lower as tech stocks fall - Reuters](https://news.google.com/rss/articles/CBMinAFBVV95cUxOYktYX1NzUUhjN2p1VDBmM2lIS0I4S2c1cmFSQjFxUmFCQWNfeXpycEw3VTdPblhTcDZEUjVSeWNnWjNCaEIzNUpnQjhIYm00R3l1NUwtYk5nX3VhTkp2RTVFaU51TnVDVzh5MFpYZTliMzFuZUNmYllmX0JTRVpycmp5OTU5ZnZUdGxiQ01XY3ItenNodklTQUliMzk?oc=5) — Reuters

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