Former President Donald Trump has accused Democrats of causing a severe stock market crash following their midterm election victories. The market decline on Thursday wiped out gains from the previous day's rally, with major indexes recording their steepest losses since April 2025. The Dow Jones Industrial Average dropped 1,833.06 points, or 3.44%, while the S&P 500 fell 4.36% and the Nasdaq Composite plunged 5.52%. The sell-off erased approximately $2.5 trillion in market value from Nasdaq-listed companies, with technology and semiconductor stocks bearing the brunt of the losses.
Trump took to Truth Social to blame Democrats for the market's decline, describing it as one of the worst days in history. He claimed the losses had hurt Americans' retirement savings, stating, 'Your 401(k)s have, therefore, dropped.' He also used a derogatory nickname for the Democratic Party, writing, 'Remember, it wasn't Republicans, it was Dumocrats.' Trump promised that the country would soon become 'BIGGER AND STRONGER THAN EVER BEFORE' in a subsequent post.
The market downturn was fueled by investor concerns over potential AI regulation and tighter oversight of data center expansion under a Democrat-controlled Congress. Analysts noted that investors feared Democrats could introduce regulations that slow the expansion of AI infrastructure, affecting projected spending and revenue growth for companies supplying the industry. Major technology companies have been committing billions of dollars to AI development and data center construction, a trend that has driven stock market gains over the past year.
Beyond the stock market, the broader cryptocurrency market also took a heavy beating following the Democrats' victories. Trump family crypto tokens plummeted by as much as 20% in the hours after the Republican Party's midterm election losses.