US bank stocks surged Thursday following a jumbo rate cut from the Federal Reserve, a sign of bullishness among investors who now expect an easing of monetary policy will boost Wall Street giants and smaller regional lenders.

This dramatic shift in borrowing costs signals a new “normal” and will directly impact industries like commercial real estate that have prospered in the low-interest-rate environment. As borrowing costs rise and valuations come under pressure, cap rates will increase as the market adjusts to this higher cost of capital.