President Donald Trump blamed Democrats’ sweeping midterm election victories for Thursday’s massive stock market sell-off, following the party’s sweeping midterm election victories, as Wall Street suffered its sharpest sell-off since April 2025.
In a post on Truth Social, Trump warned that the market plunge had taken a toll on Americans’ retirement savings.
“The Stock Market suffered one of the Worst Days in History based on the results of the Election,” Trump wrote.
“Such a sad thing to watch! It took so much work to get us to a level that no one has ever seen before, and then this,” he continued. “Your 401(k)s have, therefore, dropped.”
STOCKS PLUNGE AS DEM MIDTERM SWEEP FUELS AI REGULATORY CONCERNS
Trump lashed out at Democrats, placing blame for Thursday’s losses squarely on the party’s election gains, which included winning control of both the House and Senate.
“Remember, it wasn’t Republicans, it was Dumocrats,” he wrote. “Do not fear, however, we will soon, one way or the other, be BIGGER AND STRONGER THAN EVER BEFORE.”
U.S. stocks plunged Thursday, with the Dow Jones Industrial Average falling 1,833 points, or 3.44%, while the Nasdaq Composite dropped 5.52%, its worst session since April 2025.
The S&P 500 also declined 4.36%, while the Nasdaq entered correction territory, closing more than 10% below its October record high.
HOW DEMOCRATS’ MIDTERM GAINS COULD RESHAPE THE POLITICAL LANDSCAPE FOR AI
The sell-off was driven in part by steep losses 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%, while the Philadelphia Semiconductor Index plunged more than 12%, FOX Business previously reported.
“The obvious catalyst for the sharp selloff is that markets are pricing in the midterm results,” eToro market analyst Jakub Rochlitz said.
The market downturn came just one day after stocks rallied following the midterm elections, wiping out the previous session’s gains.
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.
FOX Business’ Sophia Compton and Eric Revell contributed to this report.
