U.S. Households got richer in the first quarter thanks to some solid stock market gains on top of a strong economic recovery from the coronavirus pandemic.
For the first three months of the year, the balance sheet of nonprofits and households climbed nearly 4% to $136.9 trillion, data posted by the Federal Reserve today shows. That’s more than double the levels from a decade ago when the country was recovering from the Great Recession.
Part of the breakdown in the first quarter includes $3.2 trillion from corporate equity holdings and $1 trillion from real estate. The S&P 500 rose 7% in the first quarter, as corporate earnings spiked.
Household net worth also jumped as a result of the growth of private and government debt dropping to 5.8% in the first quarter from the 6.3% rate in the previous three-month period. Most notably that figure is substantially down from the 25.6% height in the second quarter of 2020.
Total federal government debt in the first quarter reached $27.2 trillion.
At Thursday’s close, benchmarks were in the green, as most popular meme stocks plunged. The S&P 500 climbed nearly 20 points, the Dow Jones added 19 points, while the Nasdaq Composite rose 109 points.