Stocks drive record share of American wealth
Axios
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Americans are letting it ride, with a record share of their wealth in the stock market.
Why it matters: It means that the AI-driven rally is enriching Americans more than usual and exposing them to potentially painful losses from a reversal.
State of play: A record 33% of the total wealth of the U.S. household sector was in stocks at the end of 2025, according to Federal Reserve data.
- That beats the ~30% during the meme stock-and-SPAC mania of 2021.
- And tops the ~27% reached in Q1 2000, just as the internet boom peaked.
What they're saying: "The willingness of households to hold a rising portion of their total financial assets in equities [has] made retail investors overall an important driver of the bull market in equities in recent years," JPMorgan analysts wrote in a report late last month.
- Of course, that willingness hinges, in part, on how well stocks — and by extension, the Americans who own them — have done.
- Between the end of 2024 and 2025, the value of household portfolios has soared 18%, or $10.31 trillion, to $67.77 trillion.
- That stockpile of stock market riches is likely at new records right now, after the S&P 500's 10% rise so far this year.
The fine print: In total, the country's household equity assets are massive.
But those holdings aren't spread uniformly among all Americans.
- The richest 10% of American households owned about 87% of that total household stock market wealth, according to https://www.federalreserve.gov/releases/z1/dataviz/dfa/distribute/table/#quarter:145;series:Corporate%20equities%20and%20mutual%20fund%20shares;demographic:networth;population:1,3,5,7,9;units:shares;range:2010.4,2025.4" target="_blank">the Federal Reserve.
The big picture: This uneven distribution helps explain some of the peculiar features of the current economic and political environment.
- For instance, the so-called https://apnews.com/article/kshaped-economy-spending-income-inequality-dfa59144ecb2e1b674242666e28ff556" target="_blank">K-shaped economy, in which GDP growth is increasingly reliant on spending by the wealthy, is likely driven in part by wealth effects of stock market gains for these folks.
- In other words, the rich seem to be feeling especially flush and are willing to spend.
- Meanwhile, 90% of the population hasn't benefited from the booming market — even as relatively high inflation shrinks their real disposable income.
Friction point: The result?
A persistently sour mood among those who are seeing their https://www.axios.com/2026/05/28/consumer-spending-income-pce" target="_blank">savings accounts shrink.