June 12 (Reuters) - U.S. household wealth fell at the

end of the first quarter, Federal Reserve data showed on

Thursday, dragged down by a stock market rout that has since

reversed course.

The net worth of households and non-profit groups had

declined to $169.3 trillion as of March 31, the Fed said in its

quarterly U.S. financial accounts report, down from $170.9

trillion as of the end of last year. It was the first decline in

household net worth since the third quarter of 2023. A slide in

real estate values during the first quarter added to the

equities-driven decline.

The S&P 1500 Composite index, which encompasses the vast

majority of the U.S. stock market, shed about $2.5 trillion in

value in the first three months of 2025 as investors worried

that President Donald Trump's tariffs could drive up inflation,

send the economy into recession, or do both simultaneously.

The drop in wealth may prove short-lived - the S&P 1500 is

currently up about $1.2 trillion on a year-to-date basis and is

essentially unchanged since Trump took office for a second time

on January 20.