Trump Blames Democrats for Stock Market Plunge After Midterm Wins

President Donald Trump on Thursday blamed Democrats for the day's sharp fall on Wall Street, tying one of the worst sessions in market history directly to the results of the midterm elections. In a post on Truth Social, reported by Reuters and Fox Business, Trump wrote that "the Stock Market suffered one of the Worst Days in History based on the results of the Election."

The numbers behind the post were severe. The Dow Jones Industrial Average fell 1,833 points, or 3.44 percent. The Nasdaq Composite dropped 5.52 percent, its worst session since April 2025, and the fall pushed the Nasdaq into correction territory, more than 10 percent below its October record high. The S&P 500 declined 4.36 percent.

Trump points at the election results

Trump's post argued that the sell-off was the price of the Democratic wins, which included taking control of both the House and the Senate. "Such a sad thing to watch," he wrote. "It took so much work to get us to a level that no one has ever seen before, and then this. Your 401(k)s have, therefore, dropped."

He closed the message by telling supporters the fall would pass: "Do not fear, however, we will soon, one way or the other, be BIGGER AND STRONGER THAN EVER BEFORE." In the same post he wrote: "Remember, it wasn't Republicans, it was Dumocrats."

Tech and AI stocks led the fall

The selling was heaviest in technology and artificial intelligence stocks. Nvidia fell more than 9 percent, and the Philadelphia Semiconductor Index plunged more than 12 percent. Reporting on the session linked the drop in part to investors weighing what Democratic control could mean for AI regulation and data center development.

Jakub Rochlitz, a market analyst at eToro, described the midterm outcome as the trigger traders were pricing in: "The obvious catalyst for the sharp selloff is that markets are pricing in the midterm results."

A one-day reversal

The plunge wiped out the previous session's gains. Stocks had rallied on Wednesday, the day after the midterm elections, before Thursday's fall erased that advance and more. The retirement savings angle in Trump's post reflects how directly a drop of this size lands on household accounts: a 3.44 percent fall in the Dow in a single day is the kind of move most savers see in their 401(k) statements within the week.

What happens next depends on whether Thursday was a one-day reaction to the new balance of power in Washington or the start of a longer repricing of the technology stocks that carried the market to its October highs.