America's Wealthiest 1% See Their Fortunes Soar To $44.6 Trillion Thanks To Stock Surge

The top 1% of Americans have seen their wealth soar to a record $44.6 trillion, with stock holdings being the primary driver of this surge.

What Happened: The wealth of the top 1% of the U.S. population, defined by the Federal Reserve as those with assets exceeding $11 million, increased by $2 trillion in the fourth quarter of 2023, reported CNBC on Monday. This growth was primarily due to a year-end stock rally that boosted their portfolios.

The value of corporate equities and mutual fund shares held by the top 1% surged to $19.7 trillion from $17.65 trillion in the previous quarter. While their real estate values increased slightly, the value of their privately held businesses declined, effectively offsetting all other gains outside of stocks.

This quarterly gain is the latest addition to an unprecedented wealth boom that began in 2020 with the pandemic market surge. Since 2020, the wealth of the top 1% has increased by nearly $15 trillion, or 49%. Middle-class Americans have also seen a rising wealth tide, with the middle 50% to 90% of Americans witnessing a 50% increase in their wealth.

"The wealth effect from surging stock prices is a powerful tailwind to consumer confidence, spending and broader economic growth," said Mark Zandi, chief economist of Moody's Analytics.

See Also: Amid Trump Media & Technology Listing Buzz, Ex-President Under Scrutiny For Telling A ‘Mind-Bogglingly Nonsensical’ Story About NYSE

Why It Matters: The wealth of the ultra-rich has been a topic of significant interest in recent years. In 2023, the U.S. and China emerged as the top countries for the wealthiest individuals, with a remarkable surge in the wealth of the ultra-rich.

The world’s top 10 richest people gained more wealth in 2023 than Walmart’s total value, with billionaire Elon Musk regaining the title of the world’s richest person.

Additionally, a report by Knight Frank revealed that the U.S. is on the verge of a historic $90 trillion wealth transfer, which is set to create the wealthiest generation in history.

However, in a survey conducted in 2023, it was found that the definition of wealth in America extends beyond owning financial assets and material possessions.

Read Next: ‘You’re About To Get A Sale’ On Nvidia: Jim Cramer Shares Insight On Buying During Pullbacks

Image Via Shutterstock

Engineered by Benzinga Neuro, Edited by Kaustubh Bagalkote

The GPT-4-based Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you. Learn more.

Every question you ask will be answered
Scan the QR code to contact us
Also you can contact us via