Donald Trump blamed the Democratic Party after Wall Street shed $2.5 trillion in value, just one day after a so-called blue wave swept Republicans out of power in the midterm elections.
The Democrats’ nationwide gains sent shock waves through financial markets. Their expected control of the Senate has raised concerns that plans for new data centers across the United States could face tighter scrutiny or delays.
Trump attributed the market turmoil to the incoming Democratic leadership in a Thursday post on his Truth Social platform.
“The Stock Market suffered one of the Worst Days in History based on the results of the Election,” Trump wrote.
Democrats had already picked up 40 House seats, with 27 races yet to be called. They also secured seven Senate seats, while two additional contests remained tilted in their favor.
“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,” Trump added.
The President also took credit for the “Dumocrat” nickname, which he used while campaigning for Republican candidates.
“Do not fear, however, we will soon, one way or the other, be BIGGER AND STRONGER THAN EVER BEFORE,” he said.
Donald Trump blamed the soon to be in power Democrat Party after the market took a $2.5 trillion hit just one day after the Democrats’ blue tsunami drowned Republicans in the midterm elections
The nationwide Democratic victories triggered financial carnage for Wall Street, as their control of the Senate raises the possibility that governments may pause construction of more data centers across America
Thursday’s selloff was a dramatic reversal from Wednesday morning, when stocks initially climbed after Democrats captured both chambers of Congress and gained the ability to block key elements of Trump’s legislative agenda.
Markets had posted solid gains after election results from across the country confirmed the scale of the Republican defeat.
Trump celebrated that earlier rally on Truth Social, writing: “Stock Market just hit another Record High — 91 Days in just a short period of time — Less than two years. Your 401(k)s are through the roof. Record Setting All!”
The reversal was particularly severe among companies linked to the artificial intelligence boom. Businesses that supply data-center equipment and advanced semiconductors absorbed some of the heaviest losses.
Investors are concerned that a Democratic-controlled Congress could reduce purchases of AI chips and other high-end technology products that have become major drivers of US economic growth.
Chipmakers Nvidia and Broadcom suffered sharp declines. Nvidia fell 9.3 percent, while Broadcom dropped 10.5 percent. Rival Qualcomm ended the session 9.5 percent lower.
The technology-focused Nasdaq Composite plunged 5.5 percent, pushing the index firmly into correction territory following four weeks of gradual declines. The benchmark S&P 500 fell 4.3 percent.
For both indexes, it was the steepest single-day decline since President Donald Trump unsettled global markets in April 2025 with his “Liberation Day” tariff announcement.
Today’s stock massacre is a far cry from the numbers Wall Street saw on Wednesday morning, after the Democrats seized control of both houses in a victory that gave them the power to block President Trump’s legislation
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By the end of the session, Wall Street investors and ordinary Americans with retirement accounts were facing an estimated $2.5 trillion in paper losses.
eToro analyst Jakub Rochlitz said the clearest explanation for the selloff was that traders were adjusting their positions to reflect the midterm results.
“But the first domino to fall was Anthropic’s and OpenAI’s growth numbers, which failed to impress investors at the beginning of October,” Rochlitz told Our News Outlet.
“That made the market more sensitive to negative news, which has piled up in recent days.”
Former Goldman Sachs analyst Nic Puckrin said the election outcome was less a new source of anxiety than the final trigger for an already fragile market.
“The midterm election result didn’t really create a new fear, it was just the gust of wind that pushed over the house of cards that was already getting shaky,” Puckrin told Our News Outlet.
Heavy borrowing by investors has also intensified the market decline.
Several measures suggest speculation has reached levels not seen since the dot-com era. Margin debt, the money investors borrow to purchase stocks, reached a record $1.5 trillion in June—about 50 percent higher than a year earlier.
Federal Reserve data shows that US households now hold 48 percent of their financial assets in stocks. At the height of the dot-com bubble, that share stood at 38.7 percent.
“What the markets were missing was a spark to start the selloff. It seems that the mix of the election result and some disappointing tech earnings results was enough to tip markets over the edge,” Rochlitz told us.
One of the biggest individual losers was Elon Musk, who spent nearly half a billion dollars backing Republican candidates during the 2026 midterm campaign.
Tesla shares fell almost 12 percent on Thursday. Combined with the previous day’s post-election decline, the electric vehicle maker’s stock has dropped nearly 15 percent in two sessions, cutting approximately $39.4 billion from Musk’s fortune.
SpaceX has also lost more than 12 percent since the election, representing a further $113 billion decline in Musk’s wealth. Altogether, his paper losses since the vote have reached roughly $152 billion.
Democratic leaders have indicated that stronger AI regulation will be a central priority when they take control of Congress in January 2027.
Their proposals include mandatory safety evaluations, federal supervision of advanced AI systems, limits on data-center expansion and measures intended to shield households from rising electricity costs.
“It will take months for the market to figure out what impact the Democrats will really have on the AI buildout, and the impact on data center construction will take even longer to actually materialize,” Puckrin told us.
Investors will be watching guidance from major cloud-computing companies about future capital spending. They will also be looking for signs that hyperscalers may move more planned infrastructure projects overseas, including to Asia or the Middle East.
At the local level, a major wave of anti-AI ballot initiatives highlighted growing opposition to data centers. Voters in communities across the country overwhelmingly supported measures designed to limit or block new facilities.
The proposals included outright bans, temporary construction moratoriums, limits on energy use and requirements for residents to approve projects before development can begin.
