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Trump Blames Democrats for $2.5 Trillion Market CrashWorld
US stocks suffered one of their worst sell-offs in history on Thursday, wiping about $2.5 trillion from Nasdaq firms, and Donald Trump blamed the Democrats’ midterm wins.
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United States President Donald Trump has blamed the Democratic Party for a sharp sell-off on Wall Street that wiped trillions of dollars from American stock markets on Thursday, a day after Democrats swept to victory in the midterm elections.
The technology-heavy Nasdaq Composite fell 5.52 percent to close at 24,315.00, its worst session since April 2025, while the Dow Jones Industrial Average plunged 1,833 points, or 3.44 percent, to 51,523.06, and the S&P 500 dropped 4.36 percent to 7,353.73, according to figures reported by the Associated Press. The sell-off erased about $2.5 trillion in market value from Nasdaq-listed companies and about $2.9 trillion from firms in the S&P 500, both described as single-day records.
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Writing on Truth Social, Trump linked the losses directly to the election outcome. He said the market had suffered one of the worst days in its history because of the results, and warned that retirement savings had been hit. In an earlier post he wrote that the market had crashed because the Democrats had a big Tuesday, telling voters they only had themselves to blame.
The president insisted the losses were not the fault of his party, writing that it was not the Republicans but the Democrats who were responsible, and he predicted that markets would recover and become bigger and stronger than ever before.
The sharp reversal came a day after US markets had rallied strongly following the Democrats’ victories in the November 3 midterm elections, in which they won control of both the House of Representatives and the Senate. Thursday’s plunge wiped out those gains and pushed the Nasdaq into correction territory, more than 10 percent below its October record.
Market analysts, however, pointed to other forces behind the sell-off. Reports cited growing concern over heavy spending on artificial intelligence, doubts about the returns from data-centre investment, and worries that a Democratic-controlled Congress could restrict the AI industry. Technology shares led the decline, with chipmaker Nvidia falling about 9 percent and the Philadelphia Semiconductor Index dropping around 12 percent.
According to Reuters, the scale of the fall reflected a rapid reassessment by investors of the outlook for technology companies after the election. Traders who had celebrated the results on Wednesday turned to selling on Thursday as they weighed what Democratic control of Congress could mean for regulation of the fast-growing AI sector.
Trump’s intervention underlined how quickly the midterm results have become a political battleground over the economy. The president has long treated the stock market as a measure of his economic record, and his posts sought to pin the blame for the losses on his opponents while reassuring investors that a recovery would follow.
For now, the figures tell their own story. A market that had climbed to record highs in October has suffered one of its sharpest single-day reversals, and the debate over whether politics or the AI boom’s excesses caused the fall is set to continue as trading resumes.
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