Western Alliance, ServisFirst and First Interstate shares fall as Fed rate-cut hopes fade

Western Alliance Bancorporation, ServisFirst Bancshares and First Interstate BancSystem shares fell in afternoon trading on May 14, 2026, after major Wall Street banks pushed back expectations for Federal Reserve interest-rate cuts to December 2026 from September 2026. Goldman Sachs and Bank of America revised their forecasts after stronger-than-expected employment and inflation data suggested the U.S. economy may not be slowing enough to prompt earlier Fed easing. Treasury yields rose as investors priced in a longer period of elevated rates, with some Bank of America analysts saying the risk of another Fed rate increase may be underpriced. Western Alliance shares were down 9.7% year to date, trading at $77.18, 19.7% below their 52-week high of $96.08 set in February 2026. The stock has recorded 10 moves of more than 5% over the past year, including a 10.1% drop two months earlier after wholesale inflation exceeded forecasts.