Americans have lost over $9 trillion from the falling stock market from the beginning of the year to the end of the second quarter.
Corporate equities and mutual fund shares fell from $42 trillion at the start of the year to $33 trillion at the end of the second quarter, according to a report published Tuesday by CNBC. Previously this year, Americans’ total net worth fell by $6.1 trillion between the end of March 2022 and the end of June 2022.
Experts estimate the current total wealth losses from the stock market are between $9.5 trillion and $10 trillion, according to the outlet.
Americans’ holdings of corporate equities and mutual fund shares fell to $33 trillion at the end of the second quarter, down from $42 trillion at the start of the year. @robtfrank has the details. https://t.co/cAfSZMVXhc
— CNBC (@CNBC) September 27, 2022
“The loss of stock wealth suffered to date, if sustained, will be a small, but meaningful headwind to consumer spending and economic growth in coming months,” Chief Economist of Moody’s Analytics Mark Zandi said, reported CNBC.
The loss is significantly more than the $6 trillion quarterly loss at the beginning of the coronavirus pandemic, CNBC reported.
The top 10% of Americans have lost more than $8 trillion since the beginning of the year, with over $1 trillion coming from the bottom 90% of Americans, reported CNBC. (RELATED: ‘One Of The Worst Downturns’: Mark Zuckerburg Blasts Biden’s Economy In Warning To Employees)
Zandi believes the massive decline in wealth could reduce consumer spending by $54 billion over the next year, according to CNBC. However, Zandi also said that the reduction in spending could be smaller than the past since the top 10% of Americans with the most loss “have substantial excess saving built up during the pandemic.”
Only 36% of respondents approved of President Joe Biden’s handling of the economy in a poll released Sunday. Additionally, 74% of respondents described the economy as “bad.”