US Q3 Household Net Worth 'All-Time High'

Tech Stock Rally Pushes New York Stock Exchange to Record Highs

Stock Value Increases, Assets Reach $169 Trillion

In the third quarter of this year, the net worth of US households reached an all-time high. This is largely attributed to the rise in the New York Stock Exchange, bolstered by the re-election of Donald Trump and a rally in tech stocks.

On the 13th, Bloomberg reported, citing a report from the US Federal Reserve (Fed), that as of the end of the third quarter, US household net worth was estimated at $168.8 trillion, an increase of $4.8 trillion (2.9%) from the previous quarter.

Of the asset increase from the previous quarter, the value of stock holdings rose by $3.8 trillion, accounting for 80% of the net worth increase. Analysts suggest that the Fed's big cut (a 0.5% point reduction in the base rate) in September and the heightened possibility of Trump's return to the White House, with expectations of business-friendly policies, drove the stock market rally. The S&P 500 index hit consecutive record highs, rising 5.5% in the third quarter. The Nasdaq index also rose by 2.4%, buoyed by the tech stock rally.

Real estate values showed an upward trend in the first half of the year but decreased by about $200 billion in the third quarter. Household liquidity reached an all-time high. As of the end of the third quarter, household and nonprofit deposits, including savings deposits, checking accounts, and money market funds (MMFs), increased by $379.5 billion from the previous quarter, totaling $18.9 trillion.

Bloomberg analyzed that in recent years, US households have been a major driving force of robust economic growth. Thanks to favorable asset-debt conditions and strong wage growth, households are supporting consumer spending, which is key to growth.

Reporter An Sangmi saramin@hankyung.com