Trump Blames Democrats for Wall Street Selloff After Midterms

Wall Street suffered a steep decline on Thursday, November 5, 2026, as investors reacted to Democratic victories in the US midterm elections and growing concerns about artificial intelligence regulation. President Donald Trump blamed the election results for the losses, warning that Americans' retirement savings had also been affected.

According to market figures reported by Fox Business, the Dow Jones Industrial Average dropped 1,833.06 points, or 3.44%, to 51,523.06. The S&P 500 declined 4.36% to 7,353.73, while the Nasdaq Composite fell 5.52% to 24,314.99.

The Nasdaq's decline marked its worst session since April 2025. The index also entered correction territory, closing more than 10% below its October record high. Bloomberg reported that the Nasdaq 100 lost 6.4%, wiping out approximately $2.3 trillion in market value.

Trump addressed the market losses in posts on Truth Social Thursday evening, linking the downturn to Democratic gains in congressional elections.

"The Stock Market suffered one of the Worst Days in History based on the results of the Election," Trump wrote.

He also expressed disappointment over the financial impact on investors who hold retirement accounts.

"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," Trump wrote.

In another statement, he directly connected the market decline to Americans' retirement savings.

"Your 401(k)s have, therefore, dropped. Remember, it wasn't Republicans, it was Dumocrats," he said.

Trump subsequently expressed confidence that the country would recover from the financial setback.

"Do not fear, however, we will soon, one way or the other, be BIGGER AND STRONGER THAN EVER BEFORE," he wrote.

Bloomberg also reported that Trump blamed Democratic election victories in another post, writing that Democrats "had a big Tuesday — So said to see, you only have yourselves to blame!"

Market analyst Jakub Rochlitz of eToro identified the election outcome as the immediate catalyst for the decline.

"The obvious catalyst for the sharp selloff is that markets are pricing in the midterm results," Rochlitz said, according to Fox Business.

The losses followed a rally on Wednesday, November 4, which had lifted stocks after the midterm elections. Thursday's trading erased those gains as investors reconsidered the political and regulatory outlook.

According to NBC News, technology shares faced particularly heavy pressure. The Nasdaq fell 6.3%, eliminating approximately $2.3 trillion in market value, while the S&P 500 dropped 4.4%, losing around $2.8 trillion.

The differences between the reported Nasdaq figures reflect the separate indexes and market measurements cited by the outlets. Bloomberg's figures specifically concerned the Nasdaq 100, while Fox Business reported the Nasdaq Composite.

Nvidia shares fell more than 9%, while the Philadelphia Semiconductor Index plunged more than 12%, according to Fox Business. Technology companies faced mounting uncertainty over whether Democratic lawmakers would impose stricter oversight on artificial intelligence development.

Several Democratic candidates who won gubernatorial, attorney general and congressional races had pledged to slow or halt the construction of AI data centers, NBC News reported. Investors were concerned that these political changes could affect the industry's expansion.

Beyond regulatory uncertainty, investors have also questioned the enormous borrowing and spending supporting the AI boom. Technology companies continue expanding data center infrastructure while facing rising energy costs and uncertainty about future investment returns.

Trump has consistently supported data center development and favored lighter regulation of artificial intelligence. He has also frequently highlighted stock market gains as evidence of economic performance during speeches and social media appearances.

Despite Thursday's losses, some economists cited by NBC News viewed the correction as a potential adjustment that could reduce the risk of a more severe market crash if excessive enthusiasm surrounding artificial intelligence continues.

Asian markets also declined following the US selloff, extending the financial impact beyond American exchanges.

Bloomberg reported that Trump had previously said he would accept the midterm election results after questioning their legitimacy if Republicans lost. On Tuesday night, he congratulated Democrats for doing a "good job" while arguing that he would have won by a landslide had his name appeared on the ballot.

On Wednesday, Trump also blamed elevated fuel prices associated with the war in Iran for Republican electoral losses, while maintaining that the conflict was justified, according to Bloomberg.