Shares of Western Alliance Bancorporation (NYSE:WAL) surged 4.2% after the Federal Reserve slashed interest rates by 25 basis points to a 3.50%-3.75% range. The bank confirmed it would start expanding its balance sheet by purchasing short-term bonds, boosting liquidity and lowering yields. Traders are expecting more rate cuts despite the Fed’s forecast of just one cut next year. Western Alliance Bancorporation’s shares closed at $86.82, up 4.8% from the previous close. The market response indicates that the news is significant but won’t fundamentally change the business perception. The stock is up 5.4% year-to-date, trading close to its 52-week high of $94.

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