Finance
Regional Bank Stocks Bounce for Strongest Rally in Two Years
- Western Alliance saying deposits grew boosted stocks Wednesday
- But the rally did little to alleviate the sector’s pain
Western Alliance Bank headquarters in Phoenix, Arizona.
Photographer: Caitlin O'Hara/BloombergShares of US regional banks rallied after Western Alliance Bancorp said deposits had grown by more than $2 billion since the quarter’s end, easing worries about the health of US regional lenders.
The KBW Regional Banking Index soared by 7.3% for its best day since January 2021. Western Alliance rose 10%, while PacWest Bancorp jumped by 22%. The sector had been under pressure since March, when a series of firms including Silicon Valley Bank collapsed.