An analysis by the JPMorgan Chase Institute reveals that households are increasingly drawing on investment portfolios to support consumption. The research examined over 20 million de-identified checking accounts and found that 8.2% of individuals transferred funds from investments into checking accounts during the three months ending in April, representing 6.8% of their checking account spending.
This trend reflects broader changes in household financial structures and market conditions. Stock holdings now comprise nearly one-third of total household assets in the first quarter of 2026, roughly double the proportion from the beginning of the 2010s. The shift comes after substantial gains in equity markets, with the S&P 500 posting strong returns over recent years. Economists note that rising stock values can trigger a “wealth effect,” whereby households feel more financially secure and increase spending as investment values climb.
While the pattern is most pronounced among higher-income and older Americans, it has become more widespread across demographic groups. Among top-income earners, 20.3% made net withdrawals in the three months ending April 2026, compared to 6.6% in 2015. Among those below median income, the figure rose to 4.1% from 1.1%. Senior citizens in the top income bracket showed particularly high withdrawal rates, with 37.3% tapping investment accounts in 2025 versus 24.5% in 2019.
Younger age groups are also increasingly accessing investment accounts for spending. Among 25- to 44-year-olds in the top income percentile, 24.2% made net withdrawals in 2025, up from 15.8% in 2019. The transition from traditional pension plans to defined-contribution arrangements such as 401(k)s may contribute to this pattern.
Separate Federal Reserve research indicates that consumer spending has become significantly more sensitive to stock market movements over recent decades. A hypothetical 25% decline in the S&P could reduce consumption by approximately 3%, which carries implications given that consumer spending represents roughly two-thirds of U.S. economic activity.
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