US household net worth surged by $7.1 trillion in Q2, adding $79 billion every day for 3 months

US household net worth exploded by $7.1 trillion in Q2 2025, averaging a gain of $79 billion every single day for three months straight, according to the latest Federal Reserve Z.1 ￰0￱ wealth rose to a record $176.3 trillion, the largest jump since late 2020 during the COVID ￰1￱ is not normal. It’s rare as ￰2￱ it comes while inflation’s above 3%, rates are being cut, and the job market is ￰3￱ the money’s flowing, just not to ￰4￱ numbers show the wealth gap is ripping ￰5￱ most of this windfall? It came straight from Wall ￰6￱ S&P 500 just pulled off a 30% rally in five months, starting in ￰7￱ five times since 1975 has that ￰8￱ last two were in 2020 and ￰9￱ boom hands top 1% a $40 trillion lead This stock run didn’t lift all ￰10￱ supercharged the ￰11￱ top 1% now hold $40 trillion more than the bottom 50% ￰12￱ lower half owns just 2.5% of the nation’s net worth.

Meanwhile, the wealth-to-GDP ratio shot up to 581%, the highest since Q1 ￰13￱ stat means asset owners, basically the rich, are getting richer at a speed that leaves wage earners far ￰14￱ cuts are ￰15￱ they’re not waiting for inflation to ￰16￱ the first time in more than three decades, the Fed is set to lower rates with PCE inflation above 2.9%. Jerome Powell and his team will point to a soft labor market as the ￰17￱ the impact is lower rates fuel higher asset ￰18￱ those without assets, they’re just stuck ￰19￱ top 10% of Americans, who already own most of the investable wealth, are set to benefit again. A survey shows 70% of consumers believe their income won’t keep up with inflation.

That’s the setup: rising prices, falling rates, a roaring stock market, and most people falling ￰20￱ fuels projections for $200 trillion by 2027 History says this rally isn’t ￰21￱ time the S&P 500 has jumped 30%+ in 5 months, the next 12 months have all been ￰22￱ Investment Research put the average return over that next year at 18.1%. Also, in the last 20 instances where rate cuts came with the S&P at a peak, the index rose 13.9% on average over the following 12 ￰23￱ in the six months after such rallies, there’s never been a negative return, not once in 50 ￰24￱ that track record and the current setup, analysts now expect US household net worth to blow past $200 trillion by 2027.

That’s the ￰25￱ the Fed is the one stepping on the ￰26￱ that’s good or bad depends on whether you actually hold assets. Here’s something wild: even with all this hype around stocks, gold is outperforming. Year-to-date, gold is up 36%, while the S&P 500 is only up 12%. That’s a problem for the narrative that equities are the only place to ￰27￱ also means that traditional hedges are working better than expected, even while crypto markets continue to watch from the ￰28￱ you're reading this, you’re already ￰29￱ there with our newsletter .