:max_bytes(150000):strip_icc()/GettyImages-2152765807-fdeebdddfade460f929f835c101a6bd2.jpg "US Household Wealth: Decline & Recovery Outlook")
US Household Wealth: Decline & Recovery Outlook
- American households saw their collective net worth decline in early 2025, largely due to stock market jitters sparked by new tariffs.
- President Donald Trump's tariff announcements triggered investor anxiety, causing the S&P 500 to fall nearly 20% between February and April.Though, after some tariffs were eased, the S&P 500...
- BMO Bank senior economist Priscilla Thiagamoorthy said about 60% of households own stocks and are likely to see some recovery in their net worth during the second quarter.
Discover the impact of recent economic shifts on US household wealth. The primary_keyword, household net worth, experienced a decline in early 2025, directly linked to tariff concerns and stock market volatility. After the dip, a partial recovery followed. Learn how fluctuations affected different income groups, with higher-income households seeing greater benefits from the market’s rebound. This report analyzes the role of tariffs, the stock market, and their combined effect on the economic landscape for everyday Americans. News Directory 3 provides an in-depth look at the factors shaping household finances. Discover what’s next for your financial future.
Household Net Worth Impacted by Tariffs, Stock Volatility
American households saw their collective net worth decline in early 2025, largely due to stock market jitters sparked by new tariffs. The Federal Reserve reported a drop to $169.3 trillion in the first quarter, a $1.6 trillion decrease and the first dip since the second quarter of 2023. This followed a record high in the previous quarter.
President Donald Trump’s tariff announcements triggered investor anxiety, causing the S&P 500 to fall nearly 20% between February and April.Though, after some tariffs were eased, the S&P 500 rebounded, now sitting just 1.5% below its February peak.
BMO Bank senior economist Priscilla Thiagamoorthy said about 60% of households own stocks and are likely to see some recovery in their net worth during the second quarter.
Thiagamoorthy noted that lower- and middle-income households are less likely to experience meaningful gains from the stock market’s improvement.
“Lower- and middle-income families have far less invested in the stock market compared to the ultra wealthy,” Thiagamoorthy said. “Higher stock values push up net worth, but these households aren’t experiencing that wealth effect in the same way.”