Stocks made up roughly 45% of US households' financial assets in the second quarter. Michael Nagle/Bloomberg/Getty Images New York —

Americans have more money in stocks than ever before. But while the market’s climb may be inflating their accounts, they are more exposed than ever to a potential market slump.

Direct and indirect stock holdings, including in mutual funds or retirement plans, accounted for an all-time high of 45% of households’ financial assets in the second quarter, according to Federal Reserve data.

The record-high stock ownership raises red flags about whether a market downturn could hit Americans’ personal finances — especially in an economy with an increasingly fragile labor market and stubborn inflation .

The milestone is a product of multiple factors:

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