Buoyant stocks lift US household wealth, mainly for affluent
WASHINGTON — A rising stock market lifted U.S. household wealth to a record $106.9 trillion in the April-June quarter, the culmination of a decade of economic recovery but a gain that is concentrated largely among the most affluent.
The value of Americans’ stock and mutual fund portfolios rose $800 billion last quarter, while home values increased $600 billion, the Federal Reserve said Thursday. Total household wealth is now 2.1 per cent higher than in the first quarter, when it was $104.7 trillion.
The Fed’s report came on a day when a wave of buying on Wall Street sent U.S. stocks surging and lifted both the Dow Jones Industrial Average and the Standard & Poor’s 500 stock index to all-time highs. The Dow has gained nearly 8 per cent this year, the S&P nearly 10 per cent.
Household net worth reflects the value of assets like homes, bank accounts and stocks minus debts like mortgages and credit cards. The data aren’t adjusted for inflation or population growth.