A record-breaking $156.2 trillion was amassed by U.S. households by the end of 2023, as reported by the Federal Reserve, due to an upsurge in stock market prices that more than made up for a decline in housing market values.
According to the Federal Reserve's quarterly analysis of consumer and company financial statements, household net worth increased by 3.2% from $151.4 trillion at the end of the third quarter to $160.0 trillion in the period from October to December.
According to the Federal Reserve, the value of stocks and other equity investments increased from $42.9 trillion to $47.6 trillion, a rise of $4.7 trillion.
There has been a continuation of market advances into the beginning of 2024, with equity markets completing the month of February at record highs.
After taking into account dividends that were reinvested, the Standard & Poor's 500 Index, which serves as a benchmark, achieved a total return of 11.7% during the fourth quarter of 2023.
After experiencing growth in the two quarters prior, the value of real estate had a decline of half a trillion dollars, reaching around $49 trillion.
However, this was more than compensated for by the gains in the stock market. Households, on the other hand, were aware of the higher interest rates that were made available by money market mutual funds, certificates of deposit, and savings accounts.
The overall balances of "deposit" accounts grew by almost $270 billion, hitting $18 trillion, following a seven-quarter decline that set a new record for length.
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