US household wealth is falling: US household equity wealth is set to drop a whopping -3 trillion this quarter, the most since the 2022 bear market, according to BofA estimates. By comparison, equity holdings rose +9 trillion in 2024 to a record 56 trillion. In other words, one-third of last year's gains have likely been wiped out due to the recent market pullback. Furthermore, the top 10% of the wealthiest Americans own 87% of US stocks. This, in turn, may negatively impact consumer spending as the top 10% reflect a record 50% of all consumer expenditures. Consumer spending is set to slow in Q2 2025.