The wealth of American households has declined for the first time since the pandemic began, due to a $3 trillion stock-market wipeout

The wealth of American households fell for the first time in two years as a result of the stock market slump.

The US household wealth fell to $149.3 trillion in the first quarter of 2022, down from a record 149.8 trillion at the end of 2021, according to a Fed report. Net worth fell by $500 billion.

It is the first decline in household wealth since the first quarter of 2020.

According to the Fed, the decline in wealth was caused by a hit to the value of stocks on the balance sheets of households. A high rate of personal savings and an increase in real-estate value helped offset the loss.

The Fed's data shows that bank accounts of households increased in the first quarter of the year. The amount of time and savings deposits increased.

The Fed data shows that household balance sheets are still more than they were before the economic downturn.

In the second quarter of 2022, the wealth of US households could get hit by the stock markets. The S&P 500 fell 5% in the first three months of the year and is down 16% so far this year. In the first quarter, the index fell 9% and is down 26% for the year.

Household net worth data has been compiled by the Fed. Net worth is a measure of a household's total assets. The Fed's report is published every quarter.