Us stocks have been so miserable this week. When will the decline stop? Next week, Apple Inc, Microsoft Corp and Tesla, Inc. and other large technology stocks will report results, coupled with the Federal Reserve interest rate resolution boots will also fall to the ground, US stocks may be able to hit bottom in stages. Judging from the results of the major Wall Street banks that recently announced results, the rebound in US stocks seems to be supported by something fundamental.

Executives at several big US banks have been optimistic about the outlook for the US economy this earnings season, pointing out that their healthy customers with cash are once again eager to spend and borrow.

Consumer spending, a key driver of the US economy, fell sharply at the start of the epidemic, when Americans hoarded cash to fend off risks. At the same time, U. S. government aid has enriched Americans' wallets, many of whom use the cash to repay their debts.On the other hand, the strong consumption of American consumers is an important support for American stock companies to continue to exceed expectations, and American household consumer spending is closely related to the performance of American stocks.

It is understood that JPMorgan Chase & Co and Bank of America Corporation are the first and second largest banks in the United States respectively, covering about 140 million households.JPMorgan Chase & Co and Bank of America Corporation said that although Omicron suppressed public enthusiasm at the end of last year, US consumers are in good shape.

Bank of America Corporation, which provided the most comprehensive US consumer spending data when it announced its results on Wednesday, said its 67 million customers spent a record $3.8 trillion in 2021, up 24 per cent from 2019, the pre-epidemic benchmark. The statistics include all of the bank's customers' spending patterns-credit and debit cards, ACH, wire transfers, cash, checks and money transferred through platforms such as Zelle.

Zhitong Financial APP learned thatBank of America customers' payments in the fourth quarter were 28% higher than in the same period in 2019, also a record high.Bank of America Corporation said consumer spending continued to grow until January, with payments up 11 per cent as of January 17, 2022, compared with early January 2021.The company added that almost all customers' account balances increased from June to December last year. "We believe there is still a lot of potential spending power in the US, as despite huge spending, the average deposit balance will continue to rise until the end of the year," Bank of America Corporation CEO Brian Moynihan said on Wednesday. "

Secondly, JPMorgan Chase & Co saidTotal savings and credit card spending increased by 27% in the fourth quarter of last year compared with the fourth quarter of 2019.Spending on tourism and entertainment increased by 13% over the same period.

Once againWells Fargo & Co pointed out that his customers' credit card spending and the median account balance in the fourth quarter were 27% higher than their pre-epidemic levels.

Consumer loan balances across the industry have also fully recovered from a decline in the fourth quarter of last year, led by car loans, tuition fees, health care, vacations and other loans, according to the Federal Reserve. Citigroup Inc analyst Keith Horowitz said that this makes them more and more optimistic about the trend of loan growth.

However, there are some signs that consumers have not yet fully returned to their pre-epidemic consumption patterns.For example, credit card spending rebounded strongly in October and November, but has stagnated since early December, still 7 per cent below its pre-epidemic peak, according to the Fed. JPMorgan Chase & Co reported that the credit card balance increased by 5 per cent in the fourth quarter of last year compared with the same period in 2020, but it was still 8 per cent lower than the pre-epidemic level, mainly because consumers continued to repay their debts. The bank also noted some weakness in spending on travel and entertainment credit and debit cards, in line with the severity of the omicron epidemic.

The figures appear to be in line with weak retail sales in December, when consumers completed Christmas shopping ahead of schedule because of supply chain delays and offline spending was hit by the advent of omicron.

In addition, some analysts warn that spending could be further curbed if inflation persists. Charles Scharf, CEO of Wells Fargo & Co, also pointed out that part of the rise in consumer spending was driven by inflationary pressures. David Hendler, an analyst at Viola Risk Advisors Bank, said this could be a hidden danger to the outlook for consumer spending. "inflation could hurt people's spending power," he said. "