What happened Shares of Western Alliance Bancorp (NYSE: WAL) jumped 7% on Tuesday, following a sharp rebound in interest rates. So what Fears surrounding the COVID-19 coronavirus epidemic and the related economic fallout have sent investors running toward safe-haven investments -- most notably U.S. Treasuries -- in recent weeks. This, in turn, has led to a sharp decline in interest rates. (Interest rates move inversely to bond prices, so when investors bid up the price of bonds, rates fall.) Bank stocks have suffered because of this, since lenders' profit margins tend to fall when interest rates decline. Just yesterday, Western Alliance Bancorp's shares plunged after interest rates fell sharply to historic lows. Today, however, news broke that President Trump was seeking to implement a 0% payroll tax rate, which would reportedly go into effect for the rest of 2020. The news helped to spur a powerful rebound in interest rates, as investors grew hopeful that tax cuts could help to ward off a coronavirus-driven recession. This, in turn, helped to fuel a rally in Western Alliance and other bank stocks. Western Alliance Bancorp's shares rebounded on Tuesday. Image source: Getty Images. Now what Tax cuts could certainly help to stimulate the economy, which would be likely to boost demand for the type of loans Western Alliance Bancorp provides. That, combined with the potential for interest rates to continue to march higher, could lead to further gains for Western Alliance Bancorp's shares. 10 stocks we like better than Western Alliance BancorpWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Western Alliance Bancorp wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool recommends Western Alliance Bancorp. The Motley Fool has a disclosure policy.Source