Regional Bank Stocks Jump as Inflation Slows in October 
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Regional Bank Stocks Jump as Inflation Slows in October 

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Regional bank stocks surged as investors reacted to the CPI report.

Regional bank stocks soared on Tuesday after the Consumer Price Index remained unchanged in October amid speculations that the Federal Reserve may have ended its rate hikes. Economists expected a 0.1% increase in inflation last month. 

Indeed, regional bank stocks jumped following the report. Banks such as Axos Financial (NYSE:AX), Western Alliance Bancorporation (NYSE:WAL), and Metropolitan Bank Holding (NYSE:MCB) surged over 16%, 10%, and 6%, respectively. In addition, KeyCorp (NYSE:KEY) and PacWest Bancorp (NASDAQ:PACW) both added over 10% at the time of writing.

Earlier this year, Regional banks plunged into a crisis as higher interest rates forced clients to transfer money from savings accounts to higher-yielding alternatives. As a result, their shares saw steep declines.

In contrast to the regional banks, the biggest U.S. banks witnessed relatively modest gains. JPMorgan Chase (NYSE:JPM) gained over 2%, while Bank of America (NYSE:BAC) and Wells Fargo (NYSE:WFC) increased by more than 5% and 3%, respectively.

What is the Best Regional Bank Stock to Buy?

Turning to Wall Street, MCB stock remains the leader in upside potential here. This Moderate Buy-rated stock offers 47.33% against its average price target of $55. Meanwhile, with an average price target of $12.58, KEY stock is the laggard, as this Moderate Buy-rated stock offers investors 5.85% upside potential. 



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