The sharp fall in the stock market earlier this year has resulted in the wealth of Americans plummeting.
According to data released by the Federal Reserve on Thursday, the net worth of households and nonprofits fell $ 0.5 trillion to $ 149.3 trillion in the first quarter of 2022.
This represents a significant shift from strong gains in wealth that began in mid -2020, driven by rising house and equity prices.
The decline in the first quarter reflected a downturn in the stock market earlier this year that reduced $ 3 trillion from the value of corporate equity held directly and indirectly.
The Dow Jones and S&P 500 stock indices fell nearly 5% each in the first three months, while the Nasdaq fell nearly 9%.
It was the worst quarterly performance for the market since the first quarter of 2020 when the Covid-19 outbreak hit the U.S. economy.
Among the stressful factors this year were the Ukraine-Russia war, soaring oil prices, inflation soaring to a 40-year high, interest rate hikes by the U.S. central bank and ongoing concerns over the Covid-19 pandemic.
However, the decline in equity was partially offset by a $ 1.7 trillion increase in property values and high personal savings rates. Households and nonprofits hold $ 44.1 trillion in real estate assets.
