The fortunes of American families fell 5.6% to $ 110.8 trillion in the first quarter of this year in light of the decline in US stock markets due to the new epidemic of the Corona virus, which pushed the United States into an economic recession.
Most of the decline came due to the collapse of US stock prices in that period, according to data released by the Federal Reserve yesterday.
In the period from mid-February to the end of March, an index covering 90% of the market value of US stocks lost more than $ 10 trillion of its value. Over the course of the quarter, the Standard & Poor's 500 Index declined 20%, in the biggest quarterly loss since the fourth quarter of 2008, but later compensated for most of those losses.
The last two weeks of the first quarter witnessed a growth in job losses as many US states began issuing orders to house and close unnecessary commercial activities to contain the spread of the virus. It particularly harmed low-income workers.
On the other hand, net household wealth was $ 117.3 trillion in the last quarter of 2019.
About 20 million Americans lost their jobs in the midst of the pandemic, and the unemployment rate jumped from 3.5% in February, its lowest level in half a century, to more than 13% in May.