Stocks drive record share of American wealth

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 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 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 savings accounts shrink.