A gauge of consumers’ confidence in the economic outlook rebounded this month, as low unemployment and optimism about the new tax regime outweighed financial-market volatility for American households.

The University of Michigan on Friday said its consumer-sentiment index was 99.9 in February, up from 95.7 in January. The preliminary result overshot economists’ expectations for a reading of 95.0 for February. A final reading for the month will be released March 2.

This month’s rebound came after sentiment had dropped for the prior three months, albeit it from an elevated level. February’s reading was the highest since October when the index hit 100.7, its highest level since 2004.

”Stock market gyrations were dominated by rising incomes, employment growth, and by net favorable perceptions of the tax reforms,” said Richard Curtin, the survey’s chief economist. That meant the largest proportion of households in the survey reported an improved financial situation since 2000 and expected larger income gains during the year ahead.

Only 6% of consumers negatively referenced stock prices in the latest survey. By contrast, 35% favorably referenced government policies in February, as they did in January, the highest level in more than half a century.