Trump Attributes Sharp Stock Decline to Democratic Midterm Wins

President Donald Trump attributed the recent sharp decline in U.S. equities to the Democratic Party’s sweeping victories in the midterm elections.

In a post on Truth Social, Trump warned that the market plunge was negatively affecting Americans’ retirement savings.

“The stock market experienced one of its worst days in history due to the election results,” Trump wrote, adding that the downturn had taken a toll on 401(k) accounts.

“It was a sad development; the effort we put into achieving record‑high market levels was significant, and now the market has fallen,” he continued, noting the impact on retirement accounts.

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President Donald Trump blamed Democrats’ sweeping midterm election victories for Thursday’s sharp stock market sell‑off, warning that Americans’ retirement savings had taken a hit. (Reuters/Elizabeth Frantz / Reuters)

Trump criticized Democrats, placing the blame for Thursday’s market losses squarely on the party’s election gains, which included winning control of both the House and the Senate.

“Remember, it was the Democrats, not the Republicans, who drove this outcome,” he wrote, adding that the market would eventually become bigger and stronger.

U.S. equities fell sharply on Thursday, with the Dow Jones Industrial Average dropping 1,833 points, or 3.44%, and the Nasdaq Composite declining 5.52%, its worst performance since April 2025.

The S&P 500 slipped 4.36%, while the Nasdaq entered correction territory, closing more than 10% below its October record high.

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The Dow Jones Industrial Average plunged 1,833 points, or 3.44%, on Thursday after U.S. stocks suffered steep losses following the midterm elections. (Yuki Iwamura/AFP via Getty Images / Getty Images)

The sell‑off was driven in part by steep declines in technology and artificial intelligence stocks as investors weighed the potential impact of Democratic election victories on AI regulation and data‑center development.

Nvidia fell more than 9%, and the Philadelphia Semiconductor Index dropped more than 12%, according to FOX Business.

“The obvious catalyst for the sharp sell‑off is that markets are pricing in the midterm results,” said Jakub Rochlitz, a market analyst at eToro.

The market downturn occurred just one day after a rally that followed the midterm elections, wiping out the previous session’s gains.

President Donald Trump criticized Democrats after a massive Wall Street sell‑off that sent the Dow Jones Industrial Average down more than 1,800 points Thursday. (Aaron Schwartz/Getty Images / Getty Images)

Beyond the election results, investors have also raised concerns about the enormous borrowing and spending fueling the AI boom, particularly as technology companies expand data centers amid rising energy costs and uncertainty over future returns.

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