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 report. Total wealth rose to a record $176.3 trillion, the largest jump since late 2020 during the COVID rebound. This is not normal. It’s rare as hell. And it comes while inflation’s above 3%, rates are being cut, and the job market is struggling. But the money’s flowing, just not to everyone. The numbers show the wealth gap is ripping wider. And most of this windfall? It came straight from Wall Street. The S&P 500 just pulled off a 30% rally in five months, starting in April. Only five times since 1975 has that happened. The last two were in 2020 and 2009. Stock boom hands top 1% a $40 trillion lead This stock run didn’t lift all boats. It supercharged the yachts. The top 1% now hold $40 trillion more than the bottom 50% combined. That 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 2022. That stat means asset owners, basically the rich, are getting richer at a speed that leaves wage earners far behind. Rate cuts are coming. And they’re not waiting for inflation to cool. For 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 reason. But the impact is lower rates fuel higher asset prices. And those without assets, they’re just stuck watching. The 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 behind. Fed fuels projections for $200 trillion by 2027 History says this rally isn’t done. Every time the S&P 500 has jumped 30%+ in 5 months, the next 12 months have all been positive. Carson 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 months. Even in the six months after such rallies, there’s never been a negative return, not once in 50 years. With that track record and the current setup, analysts now expect US household net worth to blow past $200 trillion by 2027. That’s the projection. And the Fed is the one stepping on the gas. Whether 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 be. It also means that traditional hedges are working better than expected, even while crypto markets continue to watch from the sidelines. Sign up to Bybit and start trading with $30,050 in welcome gifts
