JPMorgan Strategist: Financials Could Boom In The Second Half Of 2026 If Job Growth Keeps Accelerating

JPMorgan’s Gabriela Santos says financials could outperform in the second half of 2026 if job growth keeps broadening beyond early, narrow AI-driven demand. Speaking on CNBC, the JPMorgan Asset Management chief market strategist for the Americas argued that first-half gains were powered more by AI infrastructure spending than by broad economic strength. She cited early leadership in areas tied to data-center buildouts, including memory semiconductors, industrials, and materials. Santos pointed to a 22% rise in the Russell 2000, a 20% gain in the Nasdaq 100, and roughly a 10% increase in the S&P 500 in H1 2026, alongside an 88% return for the SOX index in Q2. For labor signals, she expects an upcoming jobs report to show 125,000 jobs added and highlighted unemployment near 4.3%–4.4%. In that scenario, she flagged financials as a sector that “could have legs,” while noting AI stock positioning risks.