The Conference Board, an industry group, said its index of consumer attitudes jumped to 101.5, much higher than the expectation of 93.4, according to a Reuters poll.
US consumer confidence rose to a seven-month high, while home prices posted their biggest annual rise since August 2010, highlighting bright spots in an otherwise sluggish economic recovery.
Consumer nervousness over their stock portfolios is reaching an apex, which actually could mean good news for the market in the long run.
In an interview to CNBC-TV18, Kathy Bostjancic, Conference Board says, at this point the Fed wants to sit back and assess the economic additions before it makes an effort to do any further extension of QE. US Q1 gross domestic product (GDP) growth will come on Friday. She is expecting a figure between 2.5% and 3%, close to the Q4 reading.
US consumers felt better about the short-term outlook for the economy in April as expectations about the pace of inflation and concerns about the labour market eased.