And a further drop in precautionary savings should provide an extra boost to consumption,” Alex Holmes of Capital Economics said in a commentary.
On Monday, the S&P 500 climbed 0.6% to 4,296.12 after erasing an early 1.7% loss.
Since they’re among the biggest companies by market value, their movements hold the most sway over the S&P 500.
The week started out on a downbeat note, particularly in China, over fears that strict lockdown measures there might further crimp the world’s second-largest economy, potentially hurting global economic growth.
China’s capital, Beijing, has begun mass testing of more than 3 million people and restricted residents in one part of the city to their compounds, sparking worries of a wider lockdown similar to Shanghai.
The chair of the Federal Reserve has indicated the central bank may hike short-term interest rates by double the usual amount at upcoming meetings, starting next week.