The net wealth of households and nonprofit organizations declined $0.5 trillion to $149.3 trillion in the first quarter, according to Federal Reserve Bank figures released Thursday
The first-quarter decline reflects the swoon in the stock market earlier this year, which slashed $3 trillion from the value of directly and indirectly held corporate equities.
The total value of these holdings was $46.3 trillion in the first quarter, making it one of households’ largest assets.
The Dow and the S&P 500 each dropped nearly 5% in the first three months, while the Nasdaq plummeted nearly 9%.
It was the worst quarterly performance for the markets since the first quarter of 2020 when the Covid-19 pandemic upended the US economy.
The ratio of household net worth to disposable income remained near its record high and continues to be far above its pre-pandemic level in 2019.
Mortgage debt rose 8.6% due to rising home prices. Consumer credit rose 8.7% as Americans borrowed more on credit cards and vehicle loans.
Household debt grew at an annual pace of 8.3%, reflecting strong growth in both home mortgages and consumer credit, the Fed said.
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