US stocks ended the day with broad gains after a survey found that Americans have drastically reduced their expectations for household income growth, implying that Tuesday's consumer price data may not be as bad as previously feared.

The S&P 500 increased by 1.1%, with every sector saving energy in the green. The tech-heavy Nasdaq 100 gained 1.6% after posting its first weekly loss of 2023. Since January, the Dow Jones Industrial Average has gained the most.

Oil prices, a key component of inflation, fell following news that the Biden administration intends to sell more crude oil from the strategic petroleum reserve. WTI Crude futures have fallen below $80 per barrel.

Nonetheless, two-year treasury yields hit a new high for the year, rising 23 basis points last week in response to much stronger-than-expected January employment data.

With inflation and job data due later this week, traders are rethinking how high US interest rates will rise this year. This has fueled expectations that the fed rate will reach 5.2% in July, up from less than 5% a month ago.