WASHINGTON D.C.: United States President Donald Trump has blamed Democrats’ sweeping victories in the November 2026 midterm elections for a sharp decline in the American stock market, following a dramatic sell-off that wiped out gains recorded by Wall Street a day earlier.
Trump warned that the market downturn had affected Americans’ retirement savings, particularly their 401(k) accounts, while accusing Democrats of triggering the losses after securing control of both chambers of Congress.
In a statement published on his Truth Social account on Thursday, November 5, Trump described the market performance as one of the worst days in history, linking the decline directly to the election results.
The stock market suffered one of the worst days in history based on the results of the election, the president wrote.
He expressed disappointment over the development, arguing that his administration had worked hard to strengthen the American economy and raise stock market valuations before the latest downturn.
Trump also warned that Americans’ retirement savings had declined because of the market losses.
Your 401(k)s have, therefore, dropped, he said, before accusing Democrats of responsibility for the development.
Remember, it wasn’t Republicans, it was Dumocrats,he added, insisting that the country would eventually emerge stronger despite the market setback.
The president’s comments followed a major sell-off on Wall Street on Thursday, with all three major American stock market indexes recording significant losses.
The Dow Jones Industrial Average plunged 1,833.06 points, representing a decline of 3.44 per cent, to close at 51,523.06.
The technology-heavy Nasdaq Composite suffered an even steeper decline, falling 1,421.52 points, or 5.52 per cent, to finish at 24,314.99.
Meanwhile, the S&P 500 dropped 334.89 points, representing a 4.36 per cent decline, to close at 7,353.73.
The Nasdaq’s performance marked its worst trading session since April 2025, pushing the index into correction territory after it fell more than 10 per cent below its October record high.
The losses also wiped out the gains recorded during Wednesday’s post-election rally, when investors initially responded positively to the election outcome.
According to market reports, the sharp reversal reflected growing uncertainty among investors over the potential economic and regulatory consequences of the Democrats’ victory.
Technology companies, particularly businesses linked to artificial intelligence, semiconductor manufacturing and data-centre infrastructure, were among the hardest hit during Thursday’s trading session.
Nvidia, one of the world’s leading artificial intelligence chipmakers, lost more than nine per cent of its market value.
The Philadelphia Semiconductor Index, which tracks major semiconductor companies, also plunged by more than 12 per cent as investors rushed to sell shares in the sector.
The sell-off extended to other companies involved in the production of chips and equipment used to power artificial intelligence systems.
Market analysts attributed part of the decline to concerns that the Democrats’ control of Congress could lead to tighter regulation of artificial intelligence, restrictions on data-centre development and changes to policies supporting the rapid expansion of the technology industry.
Investors are particularly concerned that tougher regulatory requirements could increase operating costs, delay infrastructure projects and affect the profitability of companies that have invested heavily in artificial intelligence.
While Trump directly blamed Democrats’ election victories for the stock market decline, financial analysts pointed to a combination of political uncertainty, concerns over artificial intelligence investments and broader market pressures.
Jakub Rochlitz, a market analyst at eToro, described the election outcome as the immediate catalyst for the sell-off, noting that investors were adjusting their positions in response to the political developments.
The possibility of increased scrutiny of artificial intelligence infrastructure has also raised concerns among investors, particularly as technology companies continue to commit substantial resources to building data centres and expanding computing capacity.
Beyond regulatory concerns, investors have been questioning the enormous borrowing and spending associated with the artificial intelligence boom, as well as rising energy costs and uncertainty about how quickly companies will generate returns from their investments.
The sell-off therefore reflects more than the political outcome alone, with market participants reassessing the valuations and future prospects of major technology and semiconductor companies.
The sharp decline was particularly significant because it followed a rally on Wednesday, November 4, when American stocks initially advanced after Democrats secured control of both chambers of Congress.
The contrasting performances over the two trading sessions highlighted the uncertainty surrounding investors’ expectations of the incoming congressional leadership and its potential impact on major industries.
Although the election outcome initially generated positive market reactions, concerns about possible regulatory changes and the future direction of artificial intelligence investment quickly shifted investor sentiment.
The development has also renewed attention on the relationship between political decisions, business confidence and financial market performance in the United States.
For millions of Americans whose retirement savings are linked to stock market investments, the decline has raised concerns about the immediate value of their portfolios.
However, a fall in stock market valuations does not automatically mean that every 401(k) account has suffered the same level of loss. The actual impact depends on the assets held in individual retirement plans and their exposure to affected sectors.
Trump, meanwhile, expressed confidence that the market would recover, promising that the United States would become stronger despite the latest setback.
His comments have placed the stock market decline at the centre of the political debate following the Democrats’ midterm victories, as investors continue to assess what the change in congressional control could mean for the American economy.
