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401(k) millionaires fell in the first quarter — but it’s not all bad news - MarketWatch

1. 401(k) millionaires fell to 512,000, down 4.6% from Q4 2024. 2. S&P 500 dropped 4.3% amidst tariff policy uncertainty and economic fears. 3. 401(k) savings rate reached a record high of 14.3%. 4. IRA contributions rose 4.5% despite a decrease in average balances. 5. Market volatility led to increased customer engagement with Fidelity.

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FAQ

Why Neutral?

The market showed weakness which typically negatively influences stock prices. However, strong savings behaviors may support long-term market stability.

How important is it?

Investors' behaviors and market reactions in retirement accounts can influence overall market trends, including the S&P 500.

Why Short Term?

Current economic conditions could affect investor sentiment in the short term but may stabilize as savings behaviors improve.

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