US President Donald Trump has blamed the Democratic Party's sweeping victory in the midterm elections for the sharp plunge in the stock market.
He described the market decline as one of the worst in US history and attributed the losses to the election outcome. Trump added that the market losses also affected retirement savings and blamed the Democrats for the downturn.
"The Stock Market suffered one of the Worst Days in History based on the results of the Election. 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. Your 401(k)s have, therefore, dropped. Remember, it wasn’t Republicans, it was Dumocrats," he posted on Truth Social.
Urging investors not to panic, he added, "Do not fear, however, we will soon, one way or the other, be BIGGER AND STRONGER THAN EVER BEFORE."
US stocks rallied on Wednesday following the Democrats' sweeping election victories in the November 3 midterms, but the gains were wiped out the next day as concerns over the artificial intelligence trade triggered a $2.3 trillion loss in the Nasdaq 100 Index. The S&P 500 dropped 4.4%, with all 11 sectors ending the session lower.
"The Stock Market crashed today because the Dumocrats had a big Tuesday — So sad to see, you only have yourselves to blame! President DONALD J. TRUMP," he added on Truth Social.
The S&P 500 Index marked its worst performance since the April 2025 tariff meltdown. The Nasdaq 100 fell more than 6% by the time the session came to a close - its biggest single-day drop since March 2020, when the Covid-19 crisis hit markets.
According to the New York Post, investor concerns over potential Democratic-led restrictions on artificial intelligence development and data-centre projects contributed to the market downturn, as traders reassessed the outlook for technology companies.
Nvidia Corp., the world's most valuable company, plunged more than 9%, marking its biggest fall since January 2025 and wiping out all its gains for the year.
On Wednesday, the Dow surged more than 1,000 points, while the Nasdaq and S&P 500 also registered gains.
