Americans Lost Half a Trillion Dollars in Wealth in Early 2022

More people shop at $1 stores 1:00 New York (CNN Business) — Americans’ wealth plummeted earlier this year with the stock market crash.
The net worth of households and nonprofits fell to $149.3 trillion in the first quarter, a loss of half a trillion dollars, according to Federal Reserve Bank data released Thursday. This is a notable change from the solid wealth gains that began in mid-2020, fueled by soaring home and stock prices. The first-quarter decline reflects the stock market crash earlier this year, which shaved $3 trillion off the value of direct and indirect corporate shares. The total value of these holdings was $46.3 trillion in the first quarter, making them one of the largest household assets. The Dow and S&P 500 each fell nearly 5% in the first three months, while the Nasdaq plunged nearly 9%. It was the worst quarterly performance of the markets since the first quarter of 2020, when the covid-19 pandemic turned the US economy upside down. The market has been impacted this year by the Russian invasion of Ukraine, rising oil prices, rising inflation, interest rate hikes by the Federal Reserve, and continued concerns about the coronavirus pandemic. covid-19. However, the decline in stocks was partially offset by a $1.7 trillion rise in real estate values ​​and a continued high personal savings rate, according to the Fed. for-profit corporations owned $44.1 billion in real estate assets. The ratio of household net worth to disposable income remained near its all-time high and remains well above its pre-pandemic level in 2019. Meanwhile, household debt grew at an annual rate of 8.3 %, reflecting strong growth in both home mortgages and consumer credit, the Fed said. The continued rise in home prices led to an 8.6% increase in mortgage debt. Americans also took on more credit card debt and took out more auto loans, causing consumer credit to rise 8.7%.