The stock market and household net worth are tied at the hip - and not just slightly.
The r-squared (ie, correlation) between the rolling 1Y change in the S&P 500 and rolling 1Y change in household net worth is the highest it has ever been in any decade since the 1970s.
Left chart: Shows rolling 1Y change in the S&P 500 (rolling quarterly) on the X axis vs the rolling 1Y change in household net worth on the Y axis. Trendlines are shown by decade. Right chart: shows the level of correlation between the two variables (by decade), sorted from lowest to highest correlation decades. The 2020s are the highest thus far.